ICM: Dollar Strengthens as Investors Seek Safety amid Growing Risks

ICM, the leading London-based FX and CFDs provider, reported that the greenback and the Japanese Yen advanced against rivals on Thursday, supported by higher market risks and uncertainty. Global stocks couldn't sustain earlier gains on mounting worries concerning the global growth.

The dollar index which measures the greenback against a basket of major currencies tested a nine-week high of 96.73 as investors were fleeing risky assets. Market participants await the preliminary GDP figures of the third quarter, where a strong reading could provide additional support to the U.S. dollar. The economic growth gap between the United States and other rivals act as a key supported for the buck.

The British pound continued lower against the United States dollar and the Japanese Yen on ECB's president comments. Draghi said that the private sector needs to be prepared for Britain leaving the European Union without a Brexit deal. This statement was enough to lift investors’ woes and drive the pound lower. As per ICM trading platform, the GBPUSD traded at a seven-week low of $1.2797, and the GBPJPY traded at a low of 143.58.

The European Central Bank affirmed yesterday that its asset purchase program would end in December and that interest rates could gradually rise after summer 2019. However, these statements were not enough to provide support for the falling euro. The Italian Budget developments made it hard for the ECB president Mario Draghi to convince traders that the ECB will easily tighten its monetary policy. As per ICM trading platform, the EURUSD traded at a nine-week low of $1.1356, and the EURJPY tumbled to 127.30.

The U.S. major indices recovered a little portion of Wednesday's losses, supported by stronger earnings. Tesla, Microsoft, American Airlines and others reported solid quarterly earnings which helped to ease investors' fears. As per ICM trading platform, the Dow Industrial Average futures traded above the 25000 level but settled up 0.4% at 24831, the S&P500 futures gained 0.7% to 2686 to end a six-day losing streak, and the Nasdaq futures earned 0.1% to 6890. However, U.S. futures couldn't sustain the gains through the Asian session and aimed lower.

Gold prices are hovering near a three-month high amid rising risks and market uncertainty. As per ICM trading platform, the gold ounce is trading at $1235, while the silver ounce is trading at $14.62.

Oil prices are still showing signs of weakness as they head to post the third weekly loss. Oil producers are warning of oversupply in the oil market amid a global economic slowdown. As per ICM trading platform, the West Texas Intermediate crude futures traded at a low of $66.48, and the Brent futures traded at a low of $76.04 during the Asian session.

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