Dollar Down On Safe-Haven Demand
February 7, 2018
On Wednesday, the Greenback fell slightly vs. a basket of major currencies and gave up some early gains as market players remained worries after a heavy sell-off in stock markets. On the release front, traders are awaiting Fed’s Williams Speaks due later in the day.
• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.13% at 89.64
The Single currency fell slightly by 0.20%, to settle at $1.2358. Data earlier showed that the growth forecast for the German economy 2018 to 2.7% from 2.2%.
The Sterling pound fell as much as 0.29%, to settle at $1.3910. No major reports are due from UK economy today.
Against the JPY, the Greenback fell by 0.42%, to settle at ¥109.09 as traders piled into safe-haven currencies. On the release front, investors are awaiting JPY Bank Lending incl Trusts, due later in the day.
Early on Wednesday, Gold prices settled high recovering from 3-week low, as focus remained on U.S. stocks, which were the source of the latest turbulence in global financial markets. Gold Futures – Apr 18 (GCJ8), rose by 0.18%, to settle at $1,331.80.
Also on Wednesday, oil prices inched higher, amid expectations that weekly supply data due later in the day could show a decline in U.S. oil and fuel supplies. In terms of demand, it is expected to decline due to refinery maintenances at the end of the northern hemisphere winter season. Crude Oil WTI Futures – Mar 18 (CLH8) fell as much as 0.17%, to settle at $63.28, and Brent Oil Futures – Apr 18 (LCOJ8) was down by 0.16% at $66.75
The most important economic events:
• USD Fed’s Williams Speaks in Hawaii: (GMT 22:20) – Important.
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