ICM: Dollar Index Rises to a thirteen-month High ahead of Inflation Data

ICM, the leading London-based FX and CFDs provider, stated that the United States dollar is rising for the second consecutive day where the dollar was able to break a major resistance zone and trade at a thirteen-month high.

The dollar index which measures the greenback against a basket of major currencies cleared the resistance zone between 95.00 and 95.50 to reach a thirteen-month high of 96.17 during the Asian session. Market participants await the release of the July Consumer Price Index where the year on year reading is expected to tick slightly higher. Strong numbers should provide support to the monetary policy stance of the Federal Reserve. As per ICM, the EURUSD suffered from the strength of the greenback and fell to a thirteen-month low of $1.1432. Moreover, the dollar continued to rise against the Turkish Lira and Russian Ruble where the USDTRY traded at a new record high of 6.29, and the USDRUB reached a twenty-six-month high of 67.15.

ICM highlighted that British Pound is falling for the seventh consecutive day as investors fear that Britain will leave the European Union without a deal. As per ICM trading platform, the GBPUSD tumbled to a one-year low of $1.2774, and GBPJPY fell to an eleven-month low of 141.70. Traders await economic data from the United Kingdom, as better-than-expected figures could provide support to the falling pound. The preliminary second-quarter GDP, manufacturing data, and trade balance are due today.

The Japanese Yen was the only currency among majors that gained ground against the United States Dollar. As per ICM trading platform, the USDJPY traded at a two-week low of 110.68 as the pair found support by the risk aversion with equities. The preliminary release of the second quarter GDP showed that the economy grew by 0.5% QoQ versus an expectation of 0.3% and a prior reading of -0.2%.

Metal prices plunged during the Asian session as the dollar rallied. As per ICM trading platform, the Gold ounce traded at a low of $1206 and the silver ounce fell to $15.31. Both gold and silver prices are trading in a tight range near 2018 lows because of the absence of major fundamental news. However, the dollar rally and the US inflation data could lead the metals to a breakout.

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Oil prices drifted lower for the second consecutive day despite the news that China will remove crude oil from its latest tariff list. As per ICM trading platform, the West Texas Intermediate crude futures settled lower at $66.69 per barrel and the Brent futures finished at $71.94 per barrel. The US energy services firm Baker Hughes will report the US oil rigs count later today.

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