Bullet Report: Dollar under Pressure, Gold at 2 month highs.

• EURUSD trades above 1.0750 on comments from US Treasury Secretary nominee Steven Mnuchin about the strong USD weakened the greenback further. USD is vulnerable to Trump’s lack of clear economic policies and could move higher should unclarity continue.

• GBPUSD awaits the Supreme Court announcement today on whether it is the government or parliament that can trigger Article 50. It is widely expected that the government will lose the appeal, meaning that parliament will have to vote in favor of triggering Article 50 before Brexit becomes a reality. If the ruling turns out as expected, it should have little market impact. GBPUSD briefly hit a 6 week high at 1.2546.
• The first step in Trump’s ‘trade war’ was taken yesterday, with him signing an executive order withdrawing the US from the Trans Pacific Partnership. The withdrawal from the TPP is likely to be just the first ‘renegotiation’ of trade deal that Trump has on his plate. Next up: NAFTA.
• USDJPY skidded below 112.80 not paying attention Trump’s policies of massive cuts in taxes and deregulations. Aussie and kiwi both popped up on the weakening of the greenback. The former one managed to break 0.7575 resistance, another one made some modest gains having risen to 0.7235.
•  Wall Street lost just a little of its recent gains. The Dow Jones fell 0.1%, while the S&P 500 lost 0.27% and the Nasdaq 0.04%.
• The drop in the USD boosted industrial metals including copper and iron ore, while GOLD was at a two-month high at $1,220 an ounce.
• Oil prices lagged as signs of a strong recovery in U.S. drilling largely overshadowed news that OPEC and non-OPEC producers were on track to meet output reduction goals. U.S. crude futures added 23 cents to $52.98, while Brent crude eased 28 cents to $55.51 a barrel.

Looking ahead, Eurozone PMIs will be the main focus in European session. UK will release public sector net borrowing. US will release existing home sales.

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Source: Easy Forex Forex.Info