ICM: U.S. Stocks bounce-off the lows, Dollar Steady

ICM, the leading London-based FX and CFDs provider, reported that the U.S. stocks rebounded from a multi-week low to recover from earlier losses whereas the dollar index pared gains.

The Dow Jones Industrial Average bounced-off a two-week low of 26233 to settle 0.2% higher at 26486. The SPX500 found support at a six-week low of 2862 and finished the session almost flat at 2884. The tech-heavy Nasdaq Composite was the worst performer and ended the session down 0.7% at 7735. Last week, the Nasdaq logged its biggest one-week decline since late March. The jump in the U.S. Treasury yields to a multi-year high weighed on the performance of the U.S. stock market.

ICM highlighted that the dollar index which measures the greenback against a basket of major currencies retreated from a high of 96.03 to settle at 95.75. Market participants will be waiting for the release of the Producer Price Index and Consumer Price Index from the United States to grasp hints about the inflation and whether the Fed will continue in tightening its monetary policy. On the other hand, the dollar ended lower for the third consecutive day against the Japanese Yen, as investor’s demand for the safe haven currency rose amid rising risks from Italy. As per ICM trading platform, the pair USDJPY traded at a two-week low of 112.82. The Italian budget is acting as a permanent risk for euro traders which could spark investors’ appetite for alternative currencies. The EURUSD has been trading in a tight range between support zone near $1.1460 and resistance zone near $1.1550 for the past couple of days awaiting major news that could move the pair higher or lower.

Gold prices tumbled by 1% to settle lower at $1190. The ounce fell from the opening level of $1203 to trade at a ten-day low of $1182 during the day. However, the precious metal found support at the low and recovered some of the losses. The silver ounce fell by 1.7% to close at $14.40, the lowest close in ten days.

Oil prices bounced-off a one-week low, supported by the drop in Iran’s oil exports and the hurricane Michael. Iran’s oil exports fell by almost 1 million barrels as buyers seek alternative sources ahead of the U.S. sanctions. On the other hand, Hurricane Michael forced oil companies that operate in the Gulf of Mexico to shut down almost 20% of their production. As per ICM trading platform, the West Texas Intermediate crude futures rose from a low of $73.10 to trade higher at $74.73, and the Brent futures rose from a low of $82.69 to trade higher at $84.35.

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