The Greenback rose yesterday vs. a basket of major currencies despite profit taking. The U.S. dollar index rose to 101.65, thanks to a weak EUR as Marine Le Pen was given a big support ahead of the French’s presidential elections.
Euro declined yesterday after former Prime Minister Alain Juppé said he was not prepared to be a candidate in the French’s presidential elections, with traders concerned that made a victory by the leader of France's National Front (FN) and anti-EU leader Marine Le Pen more likely. The common currency fell to $1.0570, due to uncertainty EU’s political outlook. Technically, it could decline further to $1.05 during the day.
Gold fell to $1,225, negatively affected by a strong USD. Technically, the yellow metal could decline further to $1,221; however, it could trade above $1,230 later. Since the precious metal is very sensitive to the international political events, it could be traded widely during the next period as North Korea has launched four ballistic missiles towards the Sea of Japan.
Oil prices pared its last week’s gains; however, prices rose slightly after Iraq's oil minister was quoted as saying that the Organization of the Petroleum Exporting Countries (OPEC) would likely need to extend production cuts into the second half of the year.
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.