On Tuesday, the Greenback held steady after climbing to 2-1/2-week high vs. the JPY yesterday as caution set in before the U.S. tax bill becomes reality and as investors are awaiting ISM Non-Manufacturing/Services Composite due later in the day, which is expected to hit 59 from 60.1. Looking ahead, market players are also awaiting the upcoming U.S. non-farm payrolls report later this week, which will be the last employment report ahead of the Federal Reserve’s monetary policy meeting next week.
The EUR fell as much as 0.07% vs. the USD, with EUR/USD at $ 1.1858. On the release front, German services sector growth fell to a three-month low in November, as German Chancellor Angela Merkel's failure to form a three-way coalition government clouded the outlook for business.
The Sterling pound fell dramatically in early trades as disappointment over a Brexit deal prompted traders to cut their long bets. Yesterday, Prime Minister Theresa May failed to reach an agreement to open negotiations on post-Brexit free trade with the EU. The GBP fell as much as 0.52% vs. the USD, to settle at $1.3411.
The Greenback rose as much as 0.11% vs. the JPY to settle at ¥112.53.
Gold prices tread water as traders looked ahead to major U.S. economic data due later in the session for fresh sings on the likely trajectory of the U.S. monetary policy.
Gold Futures - Feb 18 (GCG8), rose slightly by 0.02%, to settle at $1,278.00.
Oil prices declined ahead of the U.S. supply data, as the market weighed the impact of increasing U.S. crude output versus last week’s deal between OPEC and non - OPEC major producers led by Russia to extend output curbs.
Crude Oil WTI Futures - Jan 18 (CLF8) fell as much at 0.75 % at $ 57.92 and Brent Oil Futures - Jan 18 (LCOF8) was down by 0.42% at $63.47.
The most important economic events:
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.