Dollar Settles Near a Three-Year Low

USD

On Friday, the Greenback settled near a three-year low vs. a basket of major currencies on worries of a possible U.S. government shutdown. On the release front, traders are awaiting Michigan Consumer Sentiment Index (JAN P), which is expected to hit 97.0 from 95.9%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.24% at 90.09.
EUR

The Euro rose by 0.37%, to settle at $1.2283 near the three year high of $1.2323 touched on Wednesday thanks to a weak dollar. Meanwhile, market players believe the ECB could edge towards ending its bond purchase program during the year.

GBP

The Single currency rose by 0.32%, to settle at $1.3942. On the release front, traders are awaiting the UK Retail Sales Ex Auto Fuel (YoY) (DEC), which is expected to hit 2.6% from %1.5.

JPY

Against the JPY, the USD fell by 0.43%, to settle at ¥110.62.

Gold

Early on Friday, Gold prices settled high, thanks to a weak Dollar, amid worries of an imminent U.S. government shutdown. Gold Futures - Feb 18 (GCG8), rose by 0.66%, to settle at $1,335.90.

Oil

Earlier today, Oil prices fell by 1% negatively affected by a recovery in the U.S. oil production after a recent decline, as well as by an expected fall in demand when winter ends in the northern hemisphere. Data on Thursday showed that the US crude oil production stood at 9.75 million barrels per day (bpd) on 12 January. Crude Oil WTI Futures - Feb 18 (CLG8) fell as much as 95%, to settle at $63.34 and Brent Oil Futures - Mar 18 (LCOH8) was down by 1.01% at $68.61.

The most important economic events:

USD U. of Mich. Sentiment (JAN P): (GMT 15:00) – Important – Forecast (97.0) – Previous (95.9).
USD Baker Hughes U.S. Rig Count (JAN 19): (GMT 15:00) – Important – Forecast (N/A) – Previous (939).
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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