On Wednesday, Gold declined by more than 2%, the lowest level in more than four-week amid mounting speculation that the Federal Reserve is moving closer to raising interest rates. The USD index gained 0.5% against a basket of currencies, positively affected by the Fed statement.
Philadelphia Fed President Patrick Harker told reporters, “The Federal Reserve should consider another interest rate hike as early as next month if the U.S. economy continues to improve as it has of late.” Chicago Fed President Charles Evans made another important statement about interest rates “expects two rate hikes this year.” Gold traded two times lower this month at $1,215 and could break the psychological barrier of $1,200 by the end of this week.
On Wednesday, European stocks managed to recover during trading after negative performance due to Brussels attacks. Euro declined to its lowest weekly level against USD marking $1.1160. The following support levels are $1.1120 and $1.1060.
GBP/USD declined to $1.41, negatively affected by the “Brexit” campaign and could decline further to the psychological barrier of $1.40.
USD rose against JPY thanks to high-risk appetite. The greenback touched 113 levels but failed to break 112.50 levels.
Oil prices closed below $40 on 9.4 million barrels of oil (MMBO) Inventory Build, way off the 3.1 million barrels expected by analysts. Closing below $40 could be a negative signal at the end of the week.
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.