Dollar Holds Steady and Markets Await Fed's December Meeting

USD

On Monday, the Greenback held steady vs. a basket of the major currencies but remained backed by anticipations of higher interest rates. Demand for the U.S. dollar continued to be supported after Friday’s stronger-than-expected U.S. jobs report underlined expectations for a rate rise by the Federal Reserve at its highly anticipated meeting.

An official data showed that the U.S. economy added a larger-than-forecast 228k jobs in the last month, but the report also showed that wage growth remained tepid.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.14% 93.774 pips.

EUR

The Single currency rose as much as 0.20% vs. the Greenback, to settle at $1.1797, pulling back from Friday’s three-week low of $1.1729.

GBP

The Sterling pound fell as much as 0.10%, to settle at $ 1.3379. The Bank of England will meet this week and is expected to keep rates unchanged.

JPY

The U.S. dollar fell vs. the JPY by 0.09%, to settle at ¥113.38. No major reports are due from Japan today.

Gold

Earlier today, Gold prices edged higher thanks to a weak U.S. dollar, but gains are likely to be limited by expectations of higher interest rates in the U.S. Gold Futures - Feb 18 (GCG8), rose as much as 0.35%, to settle at $1,252.80.

Oil

Oil prices fell at the beginning of the week as last week's increase in the U.S. rig count could undermine OPEC-led efforts to boost prices by withholding supplies. Crude Oil WTI Futures - Jan 18 (CLF8) fell as much at 0.70% at $56.95 and Brent Oil Futures - Jan 18 (LCOF8) was down by 0.50% at $63.08.

The most important economic events:

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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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