On Wednesday, the U.S. dollar fell to one-week lows vs. a basket of major currencies, as sentiment on the USD remained weak as markets shift their focus to the upcoming US inflation figures due later in the day, for further sings about how fast the Federal Reserve will hike interest rates this year. On the release front, traders are awaiting the release of highly-anticipated U.S. Consumer Price Index (YoY) (JAN), which is expected to hit 1.9%, from 2.1%.
The EUR spiked higher against USD and rose by 0.12%, to settle at $1.2367, positively affected by soft U.S. dollar. On the release front, markets are awaiting Euro-Zone Gross Domestic Product.
The Sterling pound fell by 0.20% vs. the Greenback, to settle at $1.3861. No Major reports are due from the UK today.
Against the JPY, the USD fell by 0.31%, to settle at a 15-month low of ¥107.49, due to strong anticipation that the BOJ will follow the Federal Reserve and the European Central Bank's examples in the normalizing monetary policy.
Gold prices settled high as traders are awaiting the U.S. inflation data for further signs on how fast the Federal Reserve will hike interest rates this year. Gold Futures - Apr 18 (GCJ8), rose by 0.35%, to settle at $1,335.10.
Early on Wednesday, Oil prices Settled, backed by a statement that Saudi crude production could decline in March. Saudi Aramco's crude output in March will be 100k barrels per day (bpd) below its February level while exports would be kept below 7 million bpd, Saudi energy ministry said. Data on Tuesday showed that U.S. crude stockpiles increased by 3.9 million barrels in the week to Feb. 9, to 422.4 million. Crude Oil WTI Futures - Mar 18 (CLH8) fell as much as 0.51%, to settle at $ 58.89, and Brent Oil Futures - Apr 18 (LCOJ8) was down by 0.37% at $62.49.
The most important economic events:
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.