The dollar index which measures the strength of the greenback against a basket of major currencies hovered near a two-month high unaffected by Trump's remarks. Trump never missed a chance to criticize the Federal Reserve interest rate path. He said that Obama had zero interest rate level which supported the economy in his era. DXY is now trading at a key resistance area near 96.15.
The British pound bounced-off a three-week low on Tuesday to trade at a high of $1.3045 following the news that the European Union may offer Britain a UK-wide customs Union. However, the cable lost earlier gains as market participants await May's speech to Conservative Party lawmakers in parliament.
The euro and the European equities were lower, weighed down by Italy's budget concerns. The European Commission rejected Italy's 2019 draft budget and asked the government to submit a new one in the coming three weeks. Italy could face disciplinary actions if the government couldn't submit a proper budget plan that gets approved by the European Commission. Italy's budget could create more volatility in Euro pairs and European equities for the next three weeks. The EURUSD is trading at $1.1460 ahead of the support zone near $1.1430.
The USDCAD remain caught in a tight trading range of 60 pips ahead of the Bank of Canada interest rate decision. The Bank of Canada is widely expected to raise interest rates by 25 basis points to 1.75%. However, market participants will focus on the monetary policy report to grasp clues about the path of the interest rates especially after the soft retail sales and inflation figures. The USDCAD is trading at 1.3085.
Gold prices spiked to a three-month high, bolstered by growing risks from Europe. The gold ounce traded at $1240 while the silver ounce faltered at a high of $14.78.
Oil prices tumbled more than 4% as Saudi Arabia pledged to support the oil market supply. Moreover, the American Petroleum Institute reported that the weekly U.S. oil stock rose by 9.880 million barrels last week. The West Texas Intermediate crude futures traded at a two-month low of $65.72 per barrel, and the Brent futures reached a six-week low of $75.92. The Energy Information Administration will report the official crude inventories data later today.
Major Economic Events
|14:00||CA||BoC Interest Rate Decision||1.75%||1.50%|
|14:30||US||Crude Oil Inventories||3.694||6.490|
|15:15||CA||BOC Press Conference|
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. 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.