By: DailyForex.com
The US Dollar had traded close to a 9-month peak versus the Japanese Yen after the release of news on the OPEC deal which will lower oil output. OPEC members said earlier that they intend to cut production which helped to boost oil prices by around 9%; OPEC has not lowered its production levels since 2008. The Dollar is also getting a boost from expectations of a Fed rate hike later this month and more fiscal spending from Donald Trump. Analysts say, however, that the markets have already priced in a rate hike prospect and there is likely not going to be much more strength for the Dollar.
As reported at 10:18 am (GMT) in London, the USD/JPY was trading at 114.247 Yen, down 0.11%; the pair has ranged from a session low of 113.79 Yen to a peak of 114.8200 Yen. The GBP/USD was up at $1.2546, a gain of 0.30%, earlier, the pair had hit a high of $1.2556, while the session low stands at $1.2498.
Markets Ponder Italy Vote
The Euro is under some pressure as investors gauge the likely outcome of Sunday’s referendum which could reject constitutional reforms put through by the current prime minister. If rejected, the prime minister would be forced to resign and that, analysts say, could destabilize the already fragile banking system Italy and consequently further erode confidence in the Euro. Given the outcomes of the Brexit and US presidential elections, however, markets are likely already bracing for a surprise. The EUR/USD is currently trading at $1.0626, a gain of 0.29% and just off the session peak of $1.0629.