On Friday, U.S. stocks closed higher for 4th week of gains as telecoms rally. The U.S. dollar index rose by 1% and traded at 97.40 pips.
Gold prices fell on Friday, as an interest rate hike is expected before the end of the year. Gold closed last week below $1,330 and could decline further to $1,315 and $1,300.
Dollar pared its losses last week vs. JPY and traded above ¥106, as BoJ may not agree to any new stimulus measures at its meeting next Friday.
JPY also traded higher vs. a basket of currencies, positively affected by these rumors and could settle at ¥106 ahead of the BoJ’s meeting.
The Euro traded below $1.10, negatively affected by Munich attacks. On the other hand, the ECB kept key interest rates unchanged last week, as widely expected.
GBP fell by 1% at the end of last week’s trading session, as the PMI survey showed that the UK’s economy may begin to shrink on a quarterly basis after “Brexit” vote.
Crude oil prices fell on settlement Friday and lost 4% during last week as U.S. oil rig count increased, supporting concerns over a global glut of oil.
U.S. crude oil settled at $44, the lowest level in two months and half and could re-test $45 during the course of the week.
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.