ICM: Dollar Index Retreats from a Three-Week High, Stocks Soar

ICM, the leading London-based FX and CFDs provider, reported that the greenback weakened against major rivals on Tuesday whereas US stocks continued higher supported by solid second-quarter corporate earnings.

Wall Street ended yesterday’s session in green supported by strong earnings. The second quarter results helped to fade the effect of a trade war on stock prices and bolstered the belief that the steady growth of the US economy will support companies. As per ICM trading platform, the Dow Jones Industrial Average rose to 25692, its highest level since late February, and settled at 25628. The SPX500 finished higher for the fourth consecutive day, the index traded at a high of 2863, and closed at 2860, its highest close since late Jan. The benchmark index is approaching its all-time high of 2878. The tech-heavy Nasdaq Composite gained 0.3% to settle at 7883. The Chicago Board of Exchange Volatility Index, VIX, tumbled to 10.52, its lowest level since January 24th. The drop to the lowest levels in 2018 reflects the bullish bets of investors on the US stock market, as the index is known as Wall Street’s fear index.

ICM highlighted that the dollar index which measures the greenback against a basket of major currencies fell from a three-week high of 95.52 to settle lower at 95.19. Market participants await the release of July inflation figures on Friday as a strong reading will support the monetary policy stance of the Federal Reserve. As per ICM trading platform, the USDJPY tumbled to a one-week low of 110.84 during the Asian session. The EURUSD is trading near the session’s high at $1.1628 whereas the GBPUSD is steady near an eleven-month low of $1.2920.

Metal prices edged higher during the Asian session as the US dollar softened. As per ICM trading platform, the gold ounce is trading at $1216, and the silver ounce is trading at $15.44. The Gold bullion is finding support near the $1200 psychological level. Silver prices are also finding support near a thirteen-month low of $15.20.

Oil prices rose for the second consecutive day as the US crude oil stock fell. The American Petroleum Institute reported that the US weekly crude oil stock fell by 6 million barrels. As per ICM trading platform, the West Texas Intermediate crude futures settled at $69.07 per barrel whereas Brent futures posted the highest close in a week at $74.47 per barrel. The Energy Information Administration will report the official crude oil inventories later today.

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