USD Settles and Gold Rebounds

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By ICM Capital

U.S. dollar settled last week vs. a basket of major currencies after two-days of sharp losses due to the Federal Reserve’s rate decision.

  • Despite the increasing of manufacturing production by 0.5% in February, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of major currencies settled at 100 pips.

Gold
Gold settled at $1,230 to hit 3-month high, the first increase since the Federal Reserve’s decision to hike its interest rate target.  Technically, the yellow metal could re-test $1,221 due to lack of economic data. However, the precious metal could hit new highs in anticipation the U.S. data.

EUR
Euro failed to hold its gains of last week, negatively affected by the French presidential election as far-right leader Marine Le Pen would lead the first round of voting in France’s presidential election. The common currency could trade under pressure due Opinion polling for the French presidential election, as Marine Le Pen, believes France should exit the European Union.

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Oil
Oil prices failed to maintain its gains, on worries of swelling U.S. inventories. U.S. crude settled at $48.65 and could hold at such levels in anticipation of U.S. data, which will be released tomorrow.

The most important economic events:

  • USD Fed’s Evans Speaks on Economy and Policy in New York: (GMT 17:10) Low.

Disclaimer
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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