Dollar Trades Lower Despite Trump Comments

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1. Dollar Continues To Plummet
The dollar edged even lower against its major rivals in early Friday morning trading, after bouncing slightly on some positive Trump comments. U.S. President Donald Trump said he wanted a “strong dollar” causing the USD to edge slightly higher and contradicting earlier comments made by Treasury Secretary Steven Mnuchin. The USD rise did not last however, as the dollar returned to its 3-year lows of 0.8019 as of 7:45 GMT. The dollar’s fall pushed the euro higher, with the EUR/USD reaching three-year highs. The euro was also boosted by yesterday’s European Central Bank meeting, during which President Mario Draghi stated that current economic data pointed to solid growth.*

2. Oil Prices Stabilize
Oil prices stabilized on Friday ahead of the end of the peak winter season demand from the colder parts of the world. It should be noted however, that prices were supported by ongoing supply cuts and a weakening dollar. U.S. West Texas Intermediate (USOIL) crude futures were last seen trading slightly higher at $65.56 a barrel, up almost 0.1 percent from their previous close, as of 7:45 GMT. Meanwhile, rising U.S. output threatens to undermine the supply restraint imposed by the Organization of the Petroleum Exporting Countries and Russia, so the markets may soon experience a strong reversal in oil prices.**

3. U.S. And U.K. Growth Figures Ahead
The GBP is in for some volatility today as U.K. GDP figures are due this morning, at 9:30 GMT. The preliminary estimate of GDP for the final three months of 2017 due on Friday is expected to show another quarter of 0.4% growth. Friday’s biggest focus however, will be the durable goods and GDP numbers for the U.S. Durable goods orders are forecast to increase for the second straight month, by 0.8% in December. The US economy is forecast to have expanded at an annualized rate of 3.0%, which comes slightly below the prior 3.2% rate. A surprise strong print could provide some much needed support to a plummeting USD.***

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*Source: Reuters

**Source: CNBC

***Source: Seeking Alpha

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