By ICM Capital
The U.S. dollar declined yesterday vs. a basket of major currencies on tensions in the Korean peninsula and the Middle East following the U.S. strikes in Syria. Meanwhile, White House spokesperson Sean Spicer states “I don’t see Syria’s future with (Assad) as leader of that government.”
Gold rose and settled above $1,270 recorded as the highest in 5 months, with traders shifting to safe-haven assets as a result of tensions between the U.S. relations with Russia and North Korea as well as the upcoming French presidential election.
The Greenback traded below ¥110 due to uncertainty spread across the Middle East.
Euro settled at $1.06 vs. USD with the Italian government approving emergency deficit cuts for 2017, as promised to the European Commission, while also stating that the economy would continue to grow only modestly in 2017 and 2018. Technically, the common currency could hover near $1.06 in anticipation of the first round of the 2017 French presidential election, which is set to be held on 23rd April 2017.
The Sterling pound rose to $1.25 vs. USD as UK inflation held steady last month, however, that has been still the highest level since September 2013,which raises the question of whether the Bank of England should hike interest rates. Technically, Cable could trade in a wide range
during the day, in anticipation of Mark Carney’s speech, governor of the Bank of England and Chairman of the Financial Stability Board, at the BoE.
Oil prices managed to settle high yesterday as Saudi Arabia, the de-facto leader of the OPEC, was reported to be lobbying OPEC and other major oil producers to extend a production cut deal beyond the first half of 2017.
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.