ICM: Dollar Retreats from a 14-month high on US/China Trade Talk

ICM, the leading London-based FX and CFDs provider, stated that the financial markets are recovering from the fall that occurred during the past week on Turkish Lira crisis supported by the trade talks between China and US that will take place next week.

Major US indices closed higher on Thursday with Dow Jones posting its best day in four months. The strong earnings and the news that the United States and China will resume trade talks next week boosted Wall Street. As per ICM trading platform, the Dow Jones Industrial Average gained 1.6% to 25558, and the benchmark traded near the highest level in more than five months during the Asian session. The SPX500 rose by 0.8% to settle at a one-week high of 2840. The tech-heavy Nasdaq Composite closed higher at 7806.

ICM highlighted that the dollar index which measures the greenback against a basket of major currencies fell from a fourteen-month high of 96.98. The dollar was on the rise for the past days supported by trade war tensions and the Turkish Lira crisis. However, China/US trade talk news increased investors’ risk appetite, and the dollar trimmed gains. As per ICM trading platform, the pair EURUSD tested a high of $1.1409, USDTRY traded at a one-week low of 5.70, and the USDCNY tumbled to 6.86.

Gold prices ended the day almost flat as the dollar weakened. As per ICM trading platform, the gold ounce traded at a nineteen-month low of $1160 and bounced-off the low to trade at a high of $1182. On the other hand, the silver ounce recovered from a low of $14.35 to settle higher at $14.64.

Oil prices rebounded slightly after falling to multi-week lows due to the surprise buildup in U.S. crude inventories. As per ICM trading platform, the West Texas Intermediate crude futures settled higher at $65.50 per barrel and the Brent futures gained almost 1 percent to $71.33 per barrel. The U.S. energy services firm Baker Hughes will report the US weekly oil rig count later today. The firm declared last week that the rig count rose to a multi-year high of 869.

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