News

British Pound soars on Brexit Deal Hopes

News Archive

2011 2012 2013 2014 2015 2016 2017 2018

GBP

The Sterling pound rose to the highest level in four weeks against the United States dollar as the comments of the European Union Chief negotiator shrugged-off the fears of a "no-deal" Brexit. Michel Barnier declared that the European Union is prepared to offer the United Kingdom a partnership that has never been with any country. Market participants considered his comments as a game changer and that the EU wants a deal which might not be harsh to the UK. The GBPUSD traded above $1.30 level post the comments and reached a high of $1.3043 during the Asian session. The GBPJPY was a top gainer, logged its biggest daily gain since September, and closed at a four-week high of 145.57.

USD

The dollar index which measures the greenback against a basket of major currencies ended lower for the fourth consecutive day due to the enhanced investor's risk appetite. DXY settled near a four-week low at 94.53, down 2.5% in two weeks. The economic figures continue to show that the US economy is solid, the CB consumer confidence rose to an eighteen-year high and the second reading of the second quarter GDP came out at 4.2% versus an expectation of 4.0%.

Equities

Major US indices settled higher with SPX500 and Nasdaq posting a record close for the fourth straight session supported by positive economic indicators and the possibility of a trade deal between Canada and the United States. The Dow Jones Industrial Average finished at 26124, the highest level since early February. The SPX500 rose 0.6% to 2914, and the tech-heavy Nasdaq Composite gained 1% to 8109.

Metals

Gold prices bounced-off a three-day low of $1200 and closed higher at $1207 as the dollar weakened. The gold ounce is trading in a tight range between $1200 and $1214 awaiting new fundamental developments that could drive gold higher or lower. The silver ounce finished the day slightly higher at $14.72.

Oil

Oil prices edged higher as the Energy Information Administration reported a drop in inventories. The crude oil inventories fell by 2.566 million barrels last week to a total of 405.79 million barrels. The West Texas Intermediate crude futures rose to a three-week high of $69.85 per barrel, and the Brent futures traded at a high of $77.51 per barrel.

Major Economic Events

GMT Country Event Expectation Previous
12:00 EU German CPI (MoM) (Aug) 0.1% 0.3%
12:00 EU German CPI (YoY) (Aug) 2.0% 2.0%
12:30 US Initial Jobless Claims 214 210
12:30 US Core PCE Price Index (YoY) (Jul) 2.0% 1.9%
12:30 CA GDP (MoM) (Jun) 0.1% 0.5%

 
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.COM. 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.

CFD’s and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.45% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spot FX work, and whether you can afford to take the high risk of losing your money. Read More
Read More
Mail Call Chat