Last week, USD surged to its highest level vs. JPY in three-weeks amid expectations that the Federal Reserve will raise the interest rates during the summer. On the other hand, USD traded flat vs. EUR.
Last week, USD settled at 95.29, touching its highest level vs. JPY since 28th April and traded at 110.58. Traders should pay attention to Federal Reserve Chair Janet Yellen, as she will appear at a panel event hosted by Harvard University on Friday.
From a technical point of view, USD/JPY could form a wave of correction at 110 and 109.50 levels before continuing to rise toward 111 and 112 levels.
EUR managed to settle above levels of 1.12 vs. USD and could re-test levels of 1.1290 and 1.1370 during the course of the week. The single European currency could be affected by euro zone manufacturing PMI. On the other hand, Greece’s parliament approved a raft of fresh taxes, a new privatization fund and freed up the sale of bank non-performing loans to help unlock fresh bailout funds and debt relief.
The pound rose last week amid expectations that UK could vote for staying in the EU. GBP fell against USD at the end of the trading session last week, negatively affected by U.S. interest rates and touched $1.4450. From a technical point of view, cable could touch $1.44 and trade in a limited range.
Gold prices declined last week for the second-straight week after a wave of gains. Last week, the yellow metal touched the psychological support level of $1,300 before declining to $1,240. The yellow metal ended last week above $1,250, which may give the metal some support to re-test $1,267 during the course of the day.
WTI fell slightly at the end of last week’s trading session after touching $50. Texas tea is awaiting important releases this week and could re-test $50 during the course of the week.
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.