Gold rose slightly yesterday as the greenback lost previous gains. On the other hand, U.S. industrial production hardly rose in September as a rebound in manufacturing production was offset by a decline in utilities production, pointing to a moderate acceleration in the U.S. economic growth in the third quarter. The U.S. dollar index fell to 97.75.
Gold pared its losses and moved to $1,255. Technically, negative data from China and the U.S. could lead the yellow metal to touch $1,260.
On Monday, Euro settled ahead of the ECB meeting due to expectations that the officials began thinking about reducing the size of the Emergency Liquidity Assistance granted to the economy next year.
The Eurozone's consumer price index rose at an annualized rate of 0.4% in September, according to Eurostat. Technically, Fiber is likely to trade in a limited range in anticipation of ECB’s meeting, which will be held this Thursday.
GBP settled below $1.22 after Britain’s finance minister Philip Hammond threatened to resign. The sterling pound, which plunged to a new 31-year low against the dollar, could recover slightly and trade above $1.22 if everything goes well with the UK inflation data.
Oil prices declined negatively affected by oversupply concerns and a strong USD. U.S. crude failed to settle at $50 and could retest such levels during the course of the day.
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.