On Tuesday, USD pushed modestly higher as the euro and European indices weakened following attacks in Brussels, weighing on investor risk sentiment and support for the Brexit campaign.
USD index rose to 96.65 at the end of yesterday’s trading session.
Euro declined to $1.12, negatively affected by Brussels bombings. Euro backed by business sector activity in the euro zone, which ended in the first quarter with a good performance, suggests that the additional stimulus from the ECB may actually have a positive impact.
The pound declined by 1% amid speculation that the Brussels attacks might boost the number of campaigners who support Britain leaving the EU. A recent poll states that the ‘Brexit’ poll in the UK has 43% in favour of leaving the EU.
GBP traded at $1.42 against USD at the end of yesterday’s trading session, and it could decline to $1.40.
USD/JPY rose to 112 at the end of yesterday’s trading session. The pair had tested such level before Brussels attacks and declined to 111.40 within minutes.
Gold rose slightly during yesterday’s trading session, affected by Brussels bombing. Gold was trading below $1,250, affected by strong USD and could decline to $1,240.
Oil prices settled above $41 affected by risk aversion that halted the crude oil rises.
The most important economic events:
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.