February 12, 2018
On Monday, The Greenback traded lower vs. it major peers as nervous traders have rushed to reverse their bets against the U.S. dollar and shifted to safe-haven assets. Looking to the week ahead, traders are watching for the U.S. inflation data later this week for signs of the intensity of expected US interest rate hikes. On the release front, traders are awaiting the U.S. Monthly Budget Statement, which is expected to hit $51.0b from $51.3b.
• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.9% at 90.14.
The Single currency rose by 0.15, vs. the Greenback to settle at $1.2268, after earlier hitting a day’s high of $1.2298. positively affected by a weak USD. No major reports are due from the Euro-zone today.
The Sterling pound rose by 0.15%, to settle at $1.3845.
Against the JPY, the Greenback fell by 0.09%, to settle at ¥108.69. Meanwhile, it was reported that the Japan’s government has decided to nominate Haruhiko Kuroda as governor of the BOJ for another term when his current one expires in April.
Earlier today, Gold prices settled high as the Greenback declined though traders are awaiting the US inflation data, which will be released this Wednesday, for further signs on how fast the Federal Reserve will hike interest rates this year and as Japanese financial markets will be closed for a holiday. Gold Futures – Apr 18 (GCJ8), rose by 0.58%, to settle at $1,323.30.
Early on Monday, Oil prices inched up by 1%, after falling more than 3% on Friday as stock markets recovered after days of chaotic trading. However, rising production in the United States, could undermining efforts led by the OPEC and non-OPEC countries to tighten markets and support oil prices. Crude Oil WTI Futures – Mar 18 (CLH8) fell as much as 2.30%, to settle at $60.56, and Brent Oil Futures – Apr 18 (LCOJ8) was down by 2.15% at $64.15.
The most important economic events:
• USD Monthly Budget Statement (JAN): (GMT 19:00) – Medium – Forecast ($51.0b) – Previous ($51.3b).
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