The Federal Reserve Open Market Committee (FOMC) is widely expected to announce an interest rate hike for the first time in 2016 by 25 basis points after a two-day meeting that begins this Tuesday.
The U.S. dollar index rose as much as 50 pips to settle near 101.60.
Gold prices declined last week and settled below its lowest level in ten-months, as the dollar strengthened due to an expected interest rate hike. The yellow metal traded below $1,160, negatively affected by a strong USD and could decline further during the week.
Euro declined to $1.0550 and could reach the support of $1.0530. The euro might decline further and break this support level, if the Fed ends up raising the US interest rates during this week.
Also on Friday, the Sterling declined vs. the Greenback and recorded its first weekly decline in a month, as traders’ hopes for a delayed “Brexit” dampened after British lawmakers said they would stick to Theresa May's Brexit timetable.
The Cable had briefly risen earlier, after the release of data showing UK’s trade deficit narrowed more than expected in October.
Today, Oil prices rose as much as 4% to their highest level since early 2015, after OPEC and non-OPEC has reached their first agreement since 2001 to jointly limit output. Technically, prices could touch $55 during the week.
The most important economic events:
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