On Monday, the U.S. dollar settled lower vs. a basket of major currencies, as traders remained skeptical over whether Republicans can pass a historic tax reform. On the release front, markets are awaiting the U.S. leading index for October, which is expected to hit 0.6% from -0.2%.
The single currency rose slightly vs. its major peers after talks aimed at forming Germany’s next coalition government that collapsed overnight, increasing worries over political uncertainty in the Eurozone’s largest economy. Also, the EUR rose by 0.05%, to settle at $1.1797. Today, the ECB's President Draghi is to testify on the economic and monetary policy in the European Parliament in Brussels.
The Sterling pound rose by 0.43% at $ 1.3271, vs. the USD, ahead of the UK Budget on Wednesday, which is expected to help to British consumers.
The JPY fell as much as 0.3% vs. the Greenback to settle at ¥112.12.
Earlier today, Gold prices edged lower at the start of a holiday-shortened week, as traders watch U.S. tax reform developments. Additionally, market players will focus on the minutes of the Federal Reserve’s latest policy meeting in the week ahead, as they are looking new evidence on the likely course of the U.S. monetary policy. Gold Futures - Dec 17 (GCZ7) fell by 0.38%, to settle at $1,291.57.
Oil prices were settled, as investors were reluctant to take on big new positions ahead of the Nov. 30 OPEC meeting. Meanwhile, OPEC could agree to cut oil production, as storage levels remain high despite recent drawdowns, although there are worries about the willingness of some participants to continue to curb output. Crude Oil WTI Futures - Dec 17 (CLZ7) fell as much as 0.16% at 56.62 and Brent Oil Futures - Jan 18 (LCOF8) was down by 0.37% at $ 62.49.
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