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USD Declines as Geopolitical Tensions Remain

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USD

The U.S. dollar declined at last week’s trading session vs. a basket of major currencies, negatively affected by a soft US data and lack of liquidity due to Easter Monday. Moreover, the U.S. retail sales declined 0.2% in March for a second straight month. In addition, the U.S. Consumer prices index fell 0.3% in March by the largest amount in more than two years.

“Why would I call China a currency manipulator when they are working with us on the North Korean problem? We will see what happens!” the U.S. President Donald Trump tweeted Sunday morning. The Greenback could be traded widely during the day as such statement shows that Trump's interest in political issues is more than economic.

JPY

The U.S. dollar index fell to ¥108.58 vs. JPY, the lowest level since November, as investors shift to safe-haven currencies due to geopolitical tensions.

Gold

Gold prices hit new highs as traders continued to back the yellow metal amid geopolitical tensions after the US launched missile strikes against Syria and Afghanistan. The precious metal rose as much as 0.19%, to settle at $1291.00, with traders setting their sights on the key of $1300.

Financial markets still negatively affected by the Easter holiday and we may not witness extensive trading in major markets. However, political news and geopolitical tensions will remain the main driver of markets.

Oil

On Monday, Crude oil declined as traders took profits from its recent gains. Meanwhile, oil prices could trade under pressure on signs the United States is continuing to add output, undermining OPEC efforts to boost oil prices. Brent crude futures were down 56 cents at $55.33

The most important economic events:

  • USD Net Long-term TIC Flows (FEB): (GMT 20:00) – Medium – Forecast (N/A) – Previous ($6.3b).

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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