The Greenback Hits an 8-Month High

The Greenback Hits an 8-Month High

The greenback surged on Friday and touched its highest level in 8-month vs. a basket of currencies as hopes for a U.S. rate rise, before the end of the year, continued to boost demand for the U.S. dollar.

The U.S. dollar surged after New York Fed President William Dudley said on Wednesday that the Federal Reserve would likely hike interest rates later this year if the economy remains on its current track.

Gold failed to settle above the 200-day moving average of $1,267 and swung between gains and losses at the end of last week’s trading session.

The U.S. dollar index hit an 8-month high and settled at 98.60, as the euro fell last Thursday.

Euro sank below $1.09 vs. USD and could decline further to $1,0760, with a chance to re-test the resistance of $1,0960.

The views of the Saudi Kingdom and Russia, the world's top oil producer's, on the need to stabilize the market "are getting closer". Saudi Arabia's Energy Minister Khalid Al-Falih said on Sunday. U.S. crude surged to $50 last week, although traders warned that the underlying high prices could increase the numbers of the U.S. rigs.

The most important economic events:

  • EUR Markit Eurozone Manufacturing PMI (OCT P): (GMT 10:00) – Medium – Forecast (52.7) – Previous (52.6).
  • EUR Markit Eurozone Services PMI (OCT P): (GMT 10:00) – Medium – Forecast (52.4) – Previous (52.2).
  • EUR Markit Eurozone Composite PMI (OCT P): (GMT 10:00) – Medium – Forecast (52.8) – Previous (52.6).
  • USD Markit US Manufacturing PMI (OCT P): (GMT 15:45) – Medium – Forecast (51.5) – Previous (51.5).

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.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based. Read More
Read More
Mail Call Chat