Markets await important decisions from central banks later on this week. The U.S. Federal Reserve will meet on Tuesday and Wednesday to discuss interest rates, determine monetary policy and keep interest rates steady. We advise traders to turn their attention to Federal’s final statement and the press conference.
Last week, USD index extended its gains backed by psychological level barrier of 94 and started this week, with a good outlook, at 95.10 levels.
USD traded high against EUR and touched $1.12, thanks to ECB President Mario Draghi on interest rates.
The pound sterling has started this week with gains and touched $1.45 as Britain's 'In' campaign has risen slightly ahead of the European Union referendum, polls show.
USD surged against JPY at the end of trading session last week and touched 112. The pair could settle at 112 ahead of meetings of U.S Fed and BOJ.
JPY declined today after Bloomberg reported that the BOJ could expand the negative interest rate, which was adopted in January. The BOJ will publish the interest rates this Thursday.
Gold slipped down last week after hitting a five-week high of 1,270, negatively affected by strong USD. As the yellow metal awaits U.S Fed meeting, such declines will be limited between $1,220 and $1,208.
Despite losses, Oil markets continued to make gains positively affected by Kuwait strike. WTI started this week with $43.70 and the statements of Central Banks could affect the Oil market.
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.