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Markets Await Yellen Speech

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USD

The Greenback recovered yesterday and settled at almost its lowest level in a week as markets await the  Federal Reserve Chair Janet Yellen comments who will speaking later on  in London.

  • S. dollar index (DXY), which measures the Greenback against a basket of currencies, hit 97 pips.

Meanwhile, with markets awaiting Yellen speech, investors are expecting the discussion of the Federal’s desire to reduce its holdings of government bonds and mortgage-backed securities. A positive outlook from Fed Chair Janet Yellen despite a recent batch of soft U.S. economic data could support the Fed's forecast for another hike in policy rates this year.

Gold

Gold prices dropped to 6 weeks lows and settled at $1,240 before recovering. The Precious metal is awaiting Yellen speech, as her comments will be monitored closely by market players for any new insight on policy and the timing of when the Fed will next hike interest rates. 

GBP

The Sterling pound failed to manage its gains vs. the Greenback despite British Prime Minister Teresa getting the support she needed in parliament to pass legislation. Cable settled near to $1.27 vs. USD and could trade sideways during the day. Technically, the Sterling pound is unlikely to trade above $1.28.

Oil

Oil prices continued to recover due to a technical correction following a sharp drop in prices. U.S. crude settled at $43.50 and could settle above $44 in anticipation of the U.S. inventories data, which will be released tomorrow.

The most important economic events:

  • GBP Carney Speaks at Financial Stability Report Press Conference: (GMT 10:00) – important
  • USD Consumer Confidence (JUN): (GMT 14:00) – Important – forecast (116) – Previous (117.9).
  • USD Fed's Yellen Speaks on Global Economic Issues in London: (GMT 17:00) – important

Disclaimer
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.

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