On Monday, Gold declined below $1,200 for the first time since mid-February, affected by Janet Yellen’s statements on interest rate hikes. Despite reaching levels of $1,300 the yellow metal was pushed to trade below $1,200, and it managed to settle above such levels. Also worth mentioning is that, the precious metal is awaiting the US unemployment rate next Friday. The US dollar index settled yesterday at 95.72.
EUR slightly recovered vs. USD despite the good German data, suggesting that price pressures in Europe's largest economy remain weak. From a technical point of view, the fiber is likely to trade in a limited range between $1.11 and $1.12 during the coming period.
The pound settled above $1.46 vs. USD in absence of any major economic data, but it is expected to continue to fluctuate around $1.45 during the coming period.
Japanese Yen fell sharply on Monday, as Japanese PM Shinzo Abe said he would postpone a sales tax hike scheduled for next April by two and a half years. USD surged above 111 levels, but it failed to break the resistance levels of 111.30. From a technical point of view, the pair could re-test the resistance levels of 111.30 during the course of the day.
Oil prices managed to trade above $50, although uncertainty lays ahead of an OPEC producer-group meeting later in the week. WTI settled around $49.50 and could trade in a limited range and touch $49.
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.