The Greenback under Pressure

The U.S. gross domestic product grew at an annual pace of 0.7% in the first three months of the year, which is the slowest quarter of growth since the first quarter of 2014. Meanwhile, it would be difficult for Donald Trump to fulfill his pledges to increase the annual GDP growth to 4%.

  • The U.S. dollar index fell slightly and settled below 99 pips. Technically, the Greenback is unlikely to trade widely due to May Day Holiday.

Euro failed to settle near $1.09 vs. USD as Eurozone inflation unexpectedly jumped to 1.9% in April from 1.8. Technically, the common currency is unlikely to trade widely during the day due to May Day Holiday. Meanwhile, EUR could test $1.10 this week.

Gold prices edged up at the end of last week trading session as the U.S. Q1 GDP declined. The yellow metal settled below $1,270 and it could hit new highs due to geopolitical tensions between the United States and N. Korea.

Oil prices settled above $49 amid growing hope that OPEC could extend the six-month production cut deal to the end of 2017. Technically, process to hit the psychological of $50.

The most important economic events:

  • USD Personal Consumption Expenditure Core (YoY) (MAR): (GMT 12:30) – Important – Forecast (1.7%) – Previous (1.8%).
  • USD ISM Manufacturing (APR): (GMT 14:00) – Important – Forecast (56.5) – Previous (57.2).

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
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