ICM: Dollar Index Edges higher as European Currencies Tumble

ICM, the leading London-based FX and CFDs provider, reported that the dollar strengthened as the risks rising from Italy and Britain weigh on European currencies. The Reserve Bank of Australia left its monetary policy unchanged for the 24th consecutive meeting.

The dollar index which measures the greenback against a basket of major currencies finished higher for the fourth consecutive day. DXY settled at a three-week high of 95.30 and continued stronger during the Asian session to a high of 95.54. The latest developments concerning the Italian budget weigh on the single currency. The president of the European Commission declared “if Italy needs a further special treatment, that would mean the end of the Euro.” As per ICM trading platform, the EURUSD is trading at a three-week low of $1.1535 ahead of the European trading session. On the other hand, the Sterling Pound is vulnerable to the latest developments regarding the Brexit and the outcome of the Conservatives party conference. The GBPUSD spiked to a three-day high of $1.3113 as Bloomberg reported that the U.K. government was proposing a settlement on the Irish borders issue. However, the pair reversed gains and fell to trade near the $1.30 level.

The Australian dollar dropped to a two-week low against the United States dollar following the monetary policy decision. The Reserve Bank of Australia kept interest rates unchanged at %1.50 and declared that low rates are supporting the economy. On the other hand, the bank expects that the wage growth to remain low for a while. As per ICM trading platform, the AUDUSD traded at a low of $0.7184.

The Canadian dollar rose to a four-month high against the United States dollar, boosted by the USMCA and strong economic outlook. As per ICM trading platform, the USDCAD tested a low of 1.2782, and the EURCAD is trading near an eleven-month low at 1.4788. On the other hand, Canada’s two-year yields rose to 2.28, the highest since 2008.

The gold ounce found support at a low of $1185 and bounced back up to trade at a three-day high of $1195. The precious metal is holding strong against the strengthening U.S. dollar which could hint that investors are rushing for gold to hedge against the rising risks from Europe. On the other hand, the silver ounce settled at $14.50.

Oil prices continued higher as Bloomberg reported that OPEC and non-OPEC are not producing up to their quotas. As per ICM trading platform, the West Texas Intermediate crude futures rose to a four-year high of $75.88, and the Brent futures tackled a four-year high of $85.42. The American Petroleum Institute will report the weekly U.S. oil stock later today.

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