iFOREX | Mar 29, 2017 05:07AM ET
The dollar rose against most major currencies on Tuesday, as investors shifted focus from Trump’s healthcare bill setback to upbeat economic data and bullish comments from Federal Reserve officials.
The dollar bounced back from 4-month lows, supported by solid consumer confidence data while talk of further rate hikes from Fed officials lifted sentiment.
The Consumer Board Consumer Confidence Index, hit 125.6, far above expectations of a 114 print. Consumer confidence rose to its highest level in nearly 17 years.
Meanwhile, comments from Chicago Fed President Charles Evans and Dallas Federal Reserve Bank President Robert Kaplan on Monday, added support to the dollar as both suggested that the U.S. central bank would continue its monetary tightening cycle.
For today, the UK is to publish data on net lending, Chicago Fed President Charles Evans is to speak and the U.S. is to release a report on pending homes sales.
Markets will also watch closely on U.K.'s formal move to start a split from the European Union later in the day, a historic moment where British Prime Minister Theresa May will speak about it’s plans on areas ranging from trade to defense cooperation.
GBP/USD
The sterling fell close to one-week lows against the dollar, a day ahead of the start of formal Brexit proceedings, with GBP/USD, down 0.55% to $1.2488.
Investors expect British Prime Minister Theresa May's later on Wednesday to formally file paperwork to leave the European Union.
Further pressures on the pound came from Bank of England’s Ian McCafferty who highlighted a weak outlook for the economy on Tuesday, and said he did not know if he would vote to increase borrowing costs at the next BoE meeting in May.
U.K. net lending data and a report on pending homes sales from the U.S. are due later in the day.
Gold
Gold prices traded almost unchanged on Tuesday, remaining close to one-month highs, despite upbeat economic data and rate hike comments from Federal Reserve officials.
Worries concerning Trump’s ability to push through his pro-growth economic agenda provided investors with a reason to seek refuge in the yellow metal, which is considered a safe haven asset.
Housing data are due to be released later in the day, however, investors focus is shifted towards U.K.'s formal move to officially start its departure from the European Union.
WTI Oil
Crude oil prices settled higher on Tuesday, after a severe disruption to Libyan oil supplies supported a rebound in oil prices while comments from officials suggesting OPEC could extend its current deal beyond June lifted sentiment.
U.S. crude inventories rose by 1.91 million barrels, more than the expected acccording to data from the American Petroleum Institute late Tuesday, with a drop of 1.10 million barrels in gasoline stocks, less than expected and distillates down by 2.04 million barrels, more than what was anticipated.
On Wednesday, the U.S. Energy Information Administration will release it’s official data on inventories.
US 500
The main U.S. indices were higher on Tuesday, as gains in the Oil & Gas, Basic Materials and Financials sectors led shares higher.
At the close in NYSE, the Dow Jones Industrial Average added 0.73%, while the S&P 500 index gained 0.73%, and the NASDAQ climbed 0.60%.
Some of the best performers of the session were Apple Inc (NASDAQ:AAPL), which rose 2.07% and Goldman Sachs Group Inc (NYSE:GS) which added 1.71%.
Some of the worst performers were Pfizer (NYSE:PFE) which declined by 0.06% and McDonald’s Corporation which was down 0.03%.
Housing data are due to be released later in the day, however, investors focus is shifted towards U.K.'s formal move to officially start its departure from the European Union.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.