On Tuesday, USD declined, negatively affected by a cautious stance adopted by the Federal Reserve (Fed) on raising interest rates as the greenback fell to its lowest level in 18 months against the yen.
USD index has stabilized since the beginning of the week around 94.60 levels, after it had recorded losses of around of 94.25.
USD/JPY jumped to an 18-month high backed by high demand for safe haven investments due to continued worries in the financial markets, especially Federal Reserve meeting minutes.
EUR/USD traded at 1.1360, negatively affected by soft German manufacturing data and business confidence index. Fiber (EUR/USD) is awaiting Federal Reserve meeting minutes as it could lead the the EUR to new levels, if the Fed left rates unchanged this year.
The Pound dropped amid concerns about the UK economy and traded below $1.4150. The pair could re-test levels of 1.40, if everything goes well with Federal Reserve meeting minutes.
Gold prices edged higher ahead of the Federal Reserve meeting minutes as investors turned to safe havens. Gold managed to rise during yesterday’s trading session and pared its losses. Gold settled around $1,230 and could re-test a psychological barrier of $1,200, if the Federal Reserve talks positively about interest rate hikes.
Oil prices recovered as Kuwait revives hope for an output freeze deal. WTI jumped to $36.30 and of US oil inventories as it could have an impact on prices.
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.