By ICM Capital
The U.S. dollar pared its losses vs. the Japanese Yen, on comments from the U.S. Treasury Secretary Steven Mnuchin. In an interview with the Financial Times, Mnuchin said he agreed with U.S. President Donald Trump’s view that the Greenback’s strength in the short term was hurting exports, but that he also saw the currency’s strength over the long term as a positive.
Despite a weak U.S. data, the Greenback managed to settle above ¥109.00 yesterday, boosted by comments from U.S. Treasury Secretary Steven Mnuchin and higher debt yields.
The Sterling pound rose sharply to $1.2594 as the price chart suggested a few stop-loss buy orders might have been moved above the 1.2570 area.
Gold fell to $1,281, paring gains from five-month highs yesterday as the Greenback recovered and as risk appetite due to Geopolitical tensions has declined.
Oil prices declined to $52.48 a barrel as U.S. distilleries last week added 11 rigs, bringing it to its highest since 2011, Baker Hughes data showed. Meanwhile, the U.S. crude output jumped to the highest level in more than a year in the week ended April 7, according to the Energy Information Administration (EIA).
The most important economic events:
- USD Industrial Production (MAR): (GMT: 13:15) – Medium – Forecast (0.5%) – Previous (0.0%).
- USD Manufacturing (SIC) Production (MAR): (GMT: 13:15) – Medium – Forecast (0.1%) – Previous (0.5%).
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.