On Tuesday, Euro pared its losses vs. USD, but was still affected by the uncertainty over Europe's political outlook as Anti-EU leader Marine Le Pen launched her campaign for the French presidential election. Euro traded under pressure as the Germany Industrial Production index for December fell as much as 3%, the biggest fall since 2009.
The common currency traded under pressure amid concerns over the dominance of the far-right parties in the Netherlands, Germany and Italy. Euro declined to $1.0655 vs. USD before settling to $1.07. Technically, it could decline further due to uncertainty over the third Greek bailout package, amid tensions between the International Monetary Fund (IMF) and Greece’s Government.
The U.S. dollar index recovered yesterday and settled 100 pips.
Gold managed to maintain its gains and settled at $1,230, thanks to the recent political uncertainty in Europe. Technically, the yellow metal could trade sideways due to lack of U.S. economic data.
Oil prices fell yesterday, after data showed a build-up in the U.S. Oil shale, such data could complicate efforts by the OPEC and non-OPEC producers to cut a supply glut. U.S. crude settled below $52 as Chinese oil demand grew in 2016 at its slowest pace in at least three years.
The most important economic events:
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