The dollar rose significantly in today's trading following news of tax reforms announced this month as the dollar index rose from a daily low of 91.67 to currently trade at 92.38, while the USDJPY rallied to its highest level since August 16 at 110.68.
The Pound saw a significant drop against the Dollar after the mixed UK labor market data. Unemployment fell to 4.3%, its lowest level in 42 years, while wages remained unchanged in the three months to July at 2.1% as in the previous reading. GBPUSD pulled back from highest levels since September 11, 2016 at 1.3281 to currently trade at the levels of 1.32.
Also, the euro fell against the US dollar significantly from its highest level since yesterday at 1.1994 to trade currently at the levels of 1.1890.
In the oil markets, prices continued to recover for the third day in a row approached to the levels of 49$ a barrel, and the International Energy Agency has published its monthly report, which showed a tone of optimism as it expects to increase demand during 2017, while noted during the report that the hurricanes that hit US may affect demand rates during the third quarter of the year, also indicated a decline in global supply for the first time in 4 months.
Gold prices continued to decline as we expected at the beginning of the week after a reversal pattern on the 4-hour chart to trade currently at 1321$ per ounce and is likely to continue its decline to target the levels of 1316$ and then to 1300$ levels.