On Tuesday, Gold recovered and headed to rise as the greenback declined vs. a basket of currencies amid concerns over the global economic outlook.
The yellow metal surged to $1,348 in anticipation that the Federal Reserve could raise interest rates that have become subject to external pressures.
The British pound fell by 0.5% vs. USD on Tuesday after a Bank of England policymaker said that more quantitative easing was likely to be required if the British economy worsens. The BoE last week cut interest rates and unleashed billions of pounds of stimulus to achieve stability in the wake of Britain's vote to leave the EU.
The pound pared its losses and settled at $1.30, thanks to weak USD.
Euro surged to $1.11 vs. USD thanks to lack of US economic data. From a technical point of view, Fiber could settle at $1.11 during the course of the day.
USD declined once again below ¥102 vs. JPY negatively affected by the lack of US economic data and the sharp fluctuations of the Japanese yen. The greenback could decline further vs. Japanese yen to ¥101 during the course of the week.
U.S. Energy Information Administration (EIA) is now expecting growth of global oil demand this year by 10k barrels to 1.45 million barrels a day. U.S. crude oil fell to $42.50 in anticipation of the U.S. oil inventories as it could push prices to $41.50.
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.