Dollar Recovers

Dollar Recovers


The Greenback recovered yesterday vs. a basket of major currencies, as investors believe that the Federal Reserve could hike its benchmark rate next month amid strong U.S. data.

  • The dollar index (DXY), which measures the Greenback against a basket of currencies, recovered to 99 pips.


Euro failed to maintain its gains and declined on profit-taking following Macron's widely expected victory in France's presidential elections. The common currency declined amid fears that is the European economy could bear the burden of rising Euro, which is contrary to the policy of the European Central Bank.

  • Technically, Euro could decline further to $1.07 vs. USD.


Gold failed to maintain its gains yesterday and declined to its lowest levels in two months as risk appetite increased and as political uncertainty in Europe decreased after the pro-EU centrist Emmanuel Macron has won the French presidency.


Oil prices boosted yesterday amid a strong sings that the agreement between OPEC and non-OPEC producers, could be extended until the end of the first quarter of next year. However, U.S. crude settled below $47, the lowest level since last November, in anticipation of the U.S. inventories data.

The most important economic events:

  • CAD Building Permits (MoM) (MAR): (GMT: 12:30) – Medium – Forecast (N/A) – Previous -2.5%).
  • USD Wholesale Inventories (MAR F): (GMT: 14:00) – Medium – Forecast (-0.1%) – Previous (-0.1%).

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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