Starting today’s report with an important quote “The European Central Bank's record low interest rates are causing extraordinary problems for German banks, pensioners and risk undermining voters' support for European integration” Finance Minister Wolfgang Schaeuble said to Reuters. The euro was negatively affected by such comments and declined to $1.1380 vs. Dollar at the end of yesterday’s trading session. The fiber awaits many releases later on today and we could see further moves. USD index slightly recovered and traded above 94 levels at the end of Tuesday’s trading session.
On Tuesday, the pound handed back early morning gains after an opinion poll showed the "Out" campaign 3 points in front before June's referendum. GBP/USD fell to $1.43 as the IMF has warned in its latest outlook that the UK's exit from the EU could cause "severe regional and global damage.”
USD/JPY pared its losses after a jump in oil prices and was positively affected by the recovery of global markets. The pair traded at 108.50 levels and could settle at around these levels.
Gold was hovering near $1,260 with the recovery of the global stock. The precious metal failed to break the said levels and could settle around $1,250.
On Tuesday, oil prices rose sharply and traded at $44 per barrel, the highest level in 5 months. Crude prices surged after a report said top exporters in Russia and Saudi Arabia have agreed to freeze output ahead of a much-anticipated producers meeting in Doha on Sunday.
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.