Dollar Falls and Market awaits UK CPI


On Tuesday, the Greenback fell vs. a basket of major currencies, as U.S. stocks recovered in the previous session after falling more than 5% last week. Meanwhile, market players remained worries ahead of U.S. inflation data due on Wednesday, as a stronger-than-expected reading could spook markets again and lead to a new wave of selling.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.34% at 89.70.


The Single currency rose by 0.41%, to settle at $1.2342, buoyed by a weaker dollar. 


The Sterling pound rose by 0.43%, to settle at $1.3899 supported by a weaker USD.  On the release front, traders are awaiting the UK Consumer Price Index, which is expected to hit 2.9% from 3.0%.


The U.S. dollar fell dramatically vs. the JPY and sagged to its lowest level in around a five-month, as global stocks stabilized after two weeks of sharp declines. However, market players remained cautious ahead of U.S. inflation data this week. Against HOY, the USD fell by 0.91%, to settle at ¥107.67.


Gold prices settled high on Tuesday as dollar declined, while investors are awaiting for the U.S. inflation report for January, which is due on Wednesday, to know more about the pace of interest rate rises. Inflation worries generally support gold, which is seen as a safe haven vs. rising prices. Gold Futures - Apr 18 (GCJ8), rose by 0.35%, to settle at $1,331.00.


Early on Tuesday, Crude oil prices back to gains, supported by a recovery in global equity markets and as traders shifted their attention to the upcoming U.S. supply data due later in the week. Moving ahead, investors are awaiting weekly information on U.S. inventories of crude and refined products on Tuesday and Wednesday. Crude Oil WTI Futures - Mar 18 (CLH8) fell as much as 0.40%, to settle at $59.05, and Brent Oil Futures - Apr 18 (LCOJ8) was down by 0.30% at $62.40.

The most important economic events:

  • GBP Consumer Price Index (YoY) (JAN): (GMT 09:30) – Important – Forecast (2.9%) – Previous (3.0%).
  • GBP Core Consumer Price Index (YoY) (JAN): (GMT 09:30) – Important – Forecast (2.6%) – Previous (2.5%).
  • JPY Gross Domestic Product Annualized s.a. (QoQ) (4Q P): (GMT 23:30) – Important – Forecast (1.00%) – Previous (2.5%).

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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