On Monday, the Greenback fell slightly vs. a basket of major currencies as the threat of a global trade war and higher goods prices led to a sharp sell-off in Wall Street. The U.S. President said on Thursday that he would impose new tariffs on steel and aluminum as early as next week. Steel imports will carry a 25% tariff and aluminum imports 10%, the move sent financial markets reeling. On the release front, traders are awaiting the U.S. ISM Non-Manufacturing/Services Composite for February, which is expected to hit 59, 59.9. Elsewhere, the People’s Bank of China set the fix rate of yuan vs. the Greenback at 6.3431 versus Friday’s rate of 6.3334.
The Single currency fell by 0.24%, to settle at $1.2287, amid worries that anti-establishment and far-right parties coalition government could emerge from the Italian election.
The Sterling pound declined as much as 0.15%, to settle at $1.3779. No major reports are due from the UK today.
Against the JPY, the USD fell by 0.30%, to settle at ¥105.43 as traders turns to safe-haven currencies.
Gold prices continued higher as investors turned to safe-haven assets after the U.S. President Donald Trump’s announcement that he will order tariffs on steel and aluminum imports to protect domestic producers. Gold Futures - Apr 18 (GCJ8), rose by 0.26%, to settle at $1,327.20.
Early on Monday, Oil prices settled high amid anticipations that key oil producers would discuss further how to limit the world’s oil surplus during a meeting between the U.S. shale companies and OPEC. Crude Oil WTI Futures - Crude Oil WTI Futures - Apr 18 (CLJ8) rose as much as 0.15%, to settle at $61.33, and Brent Oil Futures - May 18 (LCOK8) was up by 0.20% at $64.50.
The most important economic events:
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.