Today, Markets are focusing on the Fed's meeting as strong U.S. jobs data cemented expectations of a rise in U.S. interest rates by 0.25%. After strong U.S. data and positive statements from Fed. Officials, traders think it is the best time for interest rate hike.
Gold settled below the psychological of $1,200 as markets are awaiting the FOMC report, which will be released later on today. The Federal Reserve will disclose its monetary policy and mention its upcoming expectations on U.S. economic growth. Technically, the yellow metal could decline further to $1,190; however, it could hit new highs if Fed. Reserve holds its rates.
Oil prices fell yesterday after a monthly OPEC report that showed production out of Saudi Arabia climbing back above 10 million barrels of oil a day. U.S. crude settled at $47 before recovering to $48. U.S. crude oil declined to the lowest since late November 2016 after the Organization of the Petroleum Exporting Countries (OPEC) reported a hike in global crude inventories and raised its forecast of production in 2017. Such declines could a sign of failure OPEC cut deal.
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.