Dollar Trades Under Pressure

On Thursday, the Greenback traded lower against a basket of major currencies, as market players remained cautious ahead of a wave of U.S. economic reports due later in the day. On the release front, traders are waiting the Housing Starts, which is expected to hit -1.7% from 3.3%.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.30% at 90.38.

The Single currency rose by 0.43%, to settle at $1.2239, the common currency declined from a three year high of $1.2323 yesterday after comments by European Bank officials reflected unease over the EUR’s recent strong gains.

The Sterling pound rose by 0.35%, to settle at $1.3878, after hitting $1.3941 yesterday, the highest level since Britain’s vote to exit the EU in June 2016.

Early on Thursday, Gold prices fell for the first time in six sessions, as traders are awaiting  an important data to gauge if the U.S. economy is strong enough to withstand multiple rate hikes in 2018.

Gold Futures - Feb 18 (GCG8), fell by 0.63%, to settle at $1,330.80

Earlier today, Oil fell slightly, amid speculation weekly supply data due later in the day could show an increase in U.S. gasoline and fuel supplies.

Crude Oil WTI Futures - Feb 18 (CLG8) rose as much as 0.02% as $ 63.98 and Brent Oil Futures - Mar 18 (LCOH8) was down by 0.06% at $69.34.

The most important economic events:USD Housing Starts (MoM) (DEC): (GMT 13:30) – Medium -Forecast (-1.7%) – Previous (3.3%).

  • USD Housing Starts (MoM) (DEC): (GMT 13:30) – Medium -Forecast (-1.7%) – Previous (3.3%).
  • USD Building Permits (MoM) (DEC): (GMT 13:30) – Medium -Forecast (-1.0%) – Previous (-1.4%)

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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