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Investors Shift to Safe Haven Assets

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USD

On Thursday, Investors shifted to safe haven assets due to the rise of global tensions; however, traders have digested U.S. president Trump’s Wednesday controversial remarks, as he stated to the Wall Street Journal that, the dollar is "getting too strong." 

The dollar index (DXY), which measures the greenback against a basket of currencies, recovered yesterday to 100.49.

  • The U.S. dollar pared its losses and hit new highs yesterday after the US dropped ‘Mother of all bombs,' biggest non-nuclear bomb in the US arsenal on an ISIS tunnel complex in Afghanistan.

Gold

Elsewhere, Gold soared above $1,288, the highest level recorded since  November. The precious metal boosted yesterday as investors went to safe haven assets due to rising global tension around Syria and North Korea as well as the recent geopolitical tensions.

Meanwhile, U.S. president Trump’s Wednesday’s controversial remarks effect has declined. It is worth mentioning that the U.S. dollar declined materially yesterday after Trump’s statement “Getting too strong” during an interview recently published with wall street journal.

GBP

The sterling pound failed to settle above its Wednesday’s gains and declined to the support of $1.25 and, as the UK markets will be closed for Good Friday and Easter Monday.

The Greenback boosted yesterday due to a strong U.S. data as U.S. weekly jobless claim down to 234k and as the University of Michigan Consumer Sentiment Index for April rose to 98.0.

As many global financial markets will be closed in observance of Good Friday, the markets will be waiting for more US data, such as Consumer price indices, US retail sales and the Treasury Department's Report to Congress.

The most important economic events:

  • USD Consumer Price Index (YoY) (MAR): (GMT 12:30) – Important – Forecast (2.6%) – Previous (2.7%).
  • USD Consumer Price Index Ex Food & Energy (YoY) (MAR): (GMT 12:30) – Important – Forecast (2.3%) – Previous (2.2%).
  • USD Advance Retail Sales (MAR): (GMT 12:30) - Important – Forecast (-0.1%) – Previous (-0.1%).

Disclaimer
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.

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