U.S. dollar surged as much as 1% as the markets gained optimism with Janet Yellen’s bullish remarks on the U.S. economy. Despite Yellen giving no hints on the timing of a hike, the Federal Reserve Vice Chairman Stanley Fischer said an interest-rate increase is possible this year. The U.S. dollar index increased by 80 pips and settled at 95.50.
Gold settled at the resistance levels of $1.320 at the end of last week's trading session, negatively affected by Fischer’s remarks. From a technical point of view, breaking the support levels of $1,315 could lead the yellow metal to decline further to the psychological level of $1,300.
Euro declined vs. USD, negatively affected by the remarks of Federal Reserve Vice Chairman Stanley Fischer. Fiber could tread water between $1.11 and $1.12.
Despite the strong data of the UK consumer price index, the British pound failed to settle above $1.32 last week. From a technical point of view, the pair is likely to trade in a limited range at $1.33 and Cable’s outlook remains negative over the medium term by breaking $1.30.
Japanese Consumer Price Index (CPI) decreased in July to its lowest level in three years, as more firms delayed price increases due to weak consumption, keeping the BOJ under pressure to boost an already stimulus programme.
JPY traded at ¥102 at the end of last week’s trading session, negatively affected by such data. The pair could re-test ¥102 during the course of the day.
Oil prices rose slightly, affected by Yellen’s speech. U.S. crude settled at $47 at the end of last week's trading session.
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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.