On Tuesday, Sterling pound raced higher vs. the Greenback and touched its highest level in 19 years, after Prime Minister Theresa May outlined her plan for a clean break between the UK and the EU. Theresa May, went against expectations, as she mentioned during her much-touted speech, that a clean break will take place and not a “hard-Brexit”.
May said, “She seeks to avoid a violent shift for companies after the “Brexit” and is working on adopting reforms in customs, immigration laws and regulations of the financial sector.”
Pound settled at 1.24, up 3% vs. USD and experienced its best day since 1998.
The U.S. dollar index fell as much as 1% and declined to 100.30 pips after Trump said that the strong dollar was hurting U.S. competitiveness
Gold prices rose yesterday as much as 1.5%, to settle at $1,215 and could hit $1,221 today. Technically, the precious metal is likely to re-test the psychological level of $1,200, if gold manages to settle above such levels by the end of the week.
Euro jumped to $1.07 yesterday vs. the US dollar after May’s Brexit statement. Technically, the common currency is unlikely to maintain its gains for a long time, in anticipation of the ECB monetary policy minutes, which will be released this Thursday.
Also on Tuesday, oil prices rose slightly for the second day in a row, on a weaker USD. U.S. crude settled at $52.50 and could touch new highs during the next period.
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.