Dollar rose against a basket of major currencies at the end of last week’s trading session as U.S. inflation data could allow the Federal Reserve to raise interest rates next December. The consumer Price Index increased by 0.2% in August, the Labor Department said on Friday. The U.S. dollar index surged to 96 pips and settled at 96.05 at the end of last week’s trading session.
Better-than-expected U.S. economic data convinced some traders that the Federal Reserve could raise interest rates in December during its 20th -21st September meeting.
Gold fell to a two-week low on Friday and traded below its lowest level in two-weeks, negatively affected by strong U.S. price index.
The yellow metal fell to $1,310 and could tread water during the course of the day, in anticipation of central banks’ decisions, which will be released later on this week.
GBP weakened vs. USD and traded below the psychological barrier of $1.30, negatively affected by strong USD. Technically, Cable could decline further to $1.28.
Oil prices fell as much as 2% at the end of last week, negatively affected by glut global supply concerns. On the other hand, Gasoline prices jumped across the eastern U.S. after a spill from the country’s largest fuel pipeline choked off supplies. U.S. crude settled at $43 and could decline further to a resistance level of $42.50.
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.