On Wednesday, Gold fell as much as 1% and touched the support of $1,130. The yellow metal could trade in a limited range due to low liquidity caused by Christmas and New Year holidays. Technically, the precious metal could decline further to $1,122.
The Greenback touched new highs as Janet Yellen said during the University of Baltimore’s midyear commencement ceremony that the recent improvements in the economy have created one of the strongest job markets in years.
The U.S. dollar index touched 103.50 pips and could settle at 103.30.
The British pound hit a one-month low vs. USD, after Scottish First Minister Nicola Sturgeon said that the best way for Scotland to retain access to the EU’s single market after the United Kingdom leaves the European Union is to become an EU member itself, as an independent state.
Cable was strongly affected by such statements, and declined to $1.23 before recovering. Technically, GBP could decline further if Scotland leaves the UK.
Euro settled after European shares rose slightly during yesterday’s trading session, holding their near highest levels since January, supported by a busy year-end for corporate deal making and more signals that Italy is making progress on stabilizing its unsteady banking sector.
Oil prices settled higher on expectations of a U.S. crude inventory draw, but prices fell slightly after Libya's National Oil Corporation said that pipeline fields had been reopened after a two-year blockade. WTI settled above $53 and could recover slightly in anticipation of stronger USD, which limits the gains.
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.