U.S. Dollar Recovers

On Thursday, the Greenback recovered yesterday vs. a basket of major currencies following the Federal Reserve’s policy decision as traders began to assess the potential for another U.S. rate raise later in the year, boosted by data showing a solid economic data as the number of Americans filing for unemployment benefits declined more than expected last week.

  • The U.S. dollar index (DXY), which measures the greenback against a basket of currencies, rose as much as 0.50% to settle at 97.50 pips.

Gold tumbled to its lowest level in 3-week as the dollar climbed in the wake of a FOMC statement and Fed Chair Janet Yellen’s press conference. The yellow metal settled above $1,250. Technically, Gold is unlikely to decline further during the next period, due to political uncertainty in the Middle east and the U.S.

Despite positive comments from the Greek Finance Minister, Euro edged lower yesterday and settled at $1.1150 vs. USD. Eurozone finance ministers said on Thursday, they would release more tranche of funds to Greek and the IMF said it stood ready to offer a standby arrangement, removing considerable uncertainty over the fate of the Greek bailout program. Meanwhile, Greek Finance Minister Euclid Tsakalotos said there is now light at the end of the tunnel. Technically, the common currency could decline to $1.11 as market awaits Eurozone inflation data for, which could settle at 1.4%.

Oil prices fell yesterday and U.S. crude declined to 6-month low on increasing global crude stockpiles. U.S. crude traded at $44 and could settle at such levels until the end of the day.

The most important economic events:
USD U. of Michigan Confidence (JUN P): (GMT 14:00) – Important – Forecast (97.0) – Previous (97.1).

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

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