Starting today’s report with an important quote “U.S. economic conditions are mostly favourable yet the Federal Reserve remains cautious in raising interest rates because threats loom”, New York Fed President William Dudley said. Dudley also said, "Policy adjustments are likely to be gradual and cautious, as we continue to face significant uncertainties and the headwinds to growth from the financial crisis have not fully abated."
USD index declined by 20 pips to trade at 94.46, negatively affected by Doha’s Meeting. Yesterday, oil prices pared losses, positively affected by the Kuwaiti oil strike. The Kuwait strike has helped the market by cutting crude out of the supply chain.
The negative impact of Doha’s meeting overshadows oil prices, as they could decline to $35, despite WTI trading at $40 but it could fail to settle above during the next period.
USD/JPY touched 109 levels and the greenback eagerly awaits an important release from the housing market.
EUR settled at $1.13 amid lack of US economic data. Euro could be affected by German ZEW Survey and decline to $1.1250.
GBP rose vs. the U.S dollar and traded at $1.13, thanks to soft USD. On the other hand, U.K. finance Minister George Osborne warns voters against Brexit, saying, “Leaving the EU would do “permanent” damage to the country’s economy and would shrink the economy by 6% by 2030.”
Gold settled at the beginning of the week, affected by the lack of US economic data and th Kuwaiti oil strike. The yellow metal could gain little during the course of the week and touch $1,250.
The most important economic events:
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