Gold priced in British Pounds jumped to its highest level since 2013, as GBP declined to its lowest level in eight weeks vs. USD, amid uncertainty over whether the U.K. will leave the European Union next week which seemed to trouble investors.
On Monday, Gold extended its gains and traded at $1,284 as the yellow metal could rise further to $1,300 amid Brexit fears. On the other hand, the precious metal is awaiting Federal Reserve’s two-day policy meeting.
USD fell amid uncertainty over FOMC meeting this week. The greenback is still suffering from the consequences of U.S. payroll data for May.
The U.S. dollar index fell by 20 on Monday and traded at 94.44. From a technical point of view, USD could decline further to 94 levels before the Fed. Meeting this week.
Japanese yen inched up to a six month high vs. USD due to concerns over a possible British exit from the EU. On the other hand, JPY moved to three year high against EUR and GBP.
USD fell to 105.70 vs. JPY and could decline further to 105 levels during the course of the day.
Pound sterling was unstable vs. U.S. dollar and has seen heightened volatility on Monday. GBP traded at $1.1450 and such volatility could continue during the course of the week.
EURO recovered vs. USD after ECB bought corporate bonds worth €348 million ($392 million) last Wednesday.
Oil prices settled on Monday, affected by the important upcoming events this week. WTI traded at $48.50 and could sink further to $48.
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.