USD Back to Gains

USD Back to Gains

On Wednesday, The Greenback rose yesterday vs. a basket of major currencies boosted by a surge in the U.S. private-sector jobs in February, supporting expectations that the Federal Reserve will hike rates at its March 14-15 meeting. An official data showed that private payrolls rose by 298k jobs in February, recorded as the largest increase since December 2015, way above analysts' forecasts of 190k. 

  • The U.S. dollar index rose to 102 announced yesterday on U.S. jobs data.

Gold prices fell Wednesday to $1,206 before recovering to $1,208 negatively affected by a strong USD. Technically, the yellow metal could trade under pressure and decline further to $1,200, in anticipation of the monthly U.S. payrolls data on Friday.

Elsewhere, Euro declined to $1.0540 ahead of the ECB policy meeting, that will be held today. However, Germany does not expect European leaders to make any demands upon Mario Draghi for higher interest rates at a summit meeting in Brussels on Thursday, a German government official said yesterday.

Also on Wednesday, Oil prices fell as much as 5% after an official data showed that U.S. crude inventories increased by 8.2 million barrels, more than four times of what analysts expected. The OPEC cut deal was negatively affected by such data. U.S. crude declined to the key psychological level of $50, its lowest level in four months.

The most important economic events:

  • ECB deposit rate decision: (GMT 12:45) – Important – Forecast (-0.4%) – Previous (-0.4%).
  • ECB Monetary policy statement and press conference SPEECH REPORT: (GMT 12:45)- Important

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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