On Thursday, the Greenback declined dramatically vs. a basket of major currencies and touching a 15-month low vs. the yen after the U.S. Labor Department said its CPI increased 0.5% in January. The U.S. dollar declined as increasing inflation could be a catalyst to push the U.S. Federal Reserve toward hiking interest rates at a faster pace than currently anticipated.
The common currency traded higher, with EUR/USD rising 0.24% to $1.2492 after climbing 0.94% in the previous session. No Major reports are due from the Euro-zone today.
Against the GBP, the USD fell by 0.41%, to settle at $1.4055, after ending the previous session up 0.89%.
The JPY rose by 0.50% vs. the USD to settle at ¥106.47. On the release front, traders are awaiting Japan Buying Foreign Bonds (Yen) (9 FEB).
Gold prices rose fell by 0.02%, after touching a two-and-a-half week highs in the previous session, as traders bought the precious metal as a hedge against inflation after the U.S. Labor Department said its CPI increased 0.5% in January. Gold Futures - Apr 18 (GCJ8), fell by 0.02%, to settle at $1,357.70.
Earlier today, Oil prices edged higher by 1%, extending gains from the previous session, as Saudi Arabia, the world’s largest oil exporter and OPEC’s most influential member, could cut additional 100k bpd of its oil production and keep its exports below 7 million bpd in March.
Crude Oil WTI Futures - Mar 18 (CLH8) rose as much as 0.12%, to settle at $61.28, and Brent Oil Futures - Apr 18 (LCOJ8) was up by 0.61% at $64.75.
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.