Starting today’s report with an important quote “The slowdown in the U.S. job market would prove temporary, but the central bank will be cautious about interest rate increases until it is clear the job market is holding up.” U.S. Fed Chair Janet Yellen said in testimony Tuesday before the Senate Banking Committee in Washington.
The U.S. dollar index surged by 50 pips and settled at 94.15
GBP declined from its highest level in five months and a half vs. USD on Tuesday, negatively affected by Survation poll. The "Remain" campaign has lost some of its lead over the rival "Out" camp ahead of Thursday's EU referendum.
British PM David Cameron appeals for voters his age and older to think of the consequence of a "Brexit" for future generations as he urged them to vote to remain in the EU in Thursday's referendum.
The British pound fell to $1.4650 vs. USD and could decline further to $1.45 during the course of the day.
Euro dropped $1.1250 as Mario Draghi said, “the ECB stands ready to act with all instruments if necessary.” From a technical point of view, the single currency could decline further to $1.12.
Gold pared its gains yesterday and traded below $1,270. From a technical perspective, breaking the support levels of $1,267 is very important as it could push the yellow metal to decline to $1,250. The Precious metal is very sensitive to the outcome of Thursday's Brexit referendum.
On Tuesday, Oil prices recovered and traded above $50. WTI touched $50 and could surge to 51.50% during today’s trading session.
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.