Markets Await Key Data

Markets Await Key Data

On Monday, the Greenback extended its losses, moving away from its highest levels since 2003 as U.S. Treasury yields eased from recent highs. The U.S. dollar had jumped more than 4% vs. a basket of major currencies in the wake of Donald Trump's shock victory in the U.S. elections, with traders reckoning a Trump administration could see an expansion of the U.S. fiscal policy, boosting inflation and rising interest rates.

The U.S. dollar index fell slightly yesterday and settled at 101.30 pips. USD is awaiting an important data as the U.S. economy is expected to grow by 3%.

Also on Monday, Gold prices rose as much as 1%, recovering from their lowest levels since February as the Greenback and long-dated U.S. Treasury bond yields retreated from recent peaks. The precious metal settled above $1,190 and could touch $1,200 during the day in anticipation of the U.S. economic data.

GBP failed to maintain its gains and settled at $1.24 vs. USD. Technically, it could re-test $1.25 during the week.

The euro lost most of its gains vs. USD within the last 10 days and settled below $10.6. Technically, it could trade in a limited range during the day. The single currency was boosted by the election of Francois Fillona and dollar's broad weakness.

Oil prices jumped during yesterday's trading session, thanks to Russian statements on -Iranian-Russian coordination. WTI rose on such statements, but failed to settle above $47 amid uncertainty over OPEC's Wednesday meeting.

The most important economic events:

  • EUR German Consumer Price Index (YoY) (NOV P): (GMT 15:00 ) - Important – Forecast (0.8%) – previous (0.8%).
  • USD Consumer Confidence (NOV): (GMT 17:00 ) - Important – Forecast (101.5) – previous (98.6).

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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