Oil Jumps

Oil Jumps

USD declined vs. a basket of currencies for the first time in seven days, as traders reap profits on a day lacking U.S. economic data, and as global stock markets are down. USD index fell by 0.4% and traded below 93.80 during yesterday’s trading session.

Euro rose against USD and broke through $1.14.  From a technical point of view, the pair could settle at such levels, affected by the weakness of the two currencies. 

Official data showed yesterday that the U.K. industrial production grew less than forecasted in March, the biggest slowdown since 2013. Manufacturers were negatively affected by the global slowdown. In this regard, Chancellor George Osborne said, “The BoE and the Treasury are planning for Brexit, just in case.” After touching $1.45, the cable declined vs. USD and could face sharp fluctuations in conjunction with the BoE’s interest rate decision and the inflation report.

USD declined once again to 108 level vs. JPY, after a series of gains. The greenback could decline further to 107.60 during the course of the day.

Gold gained a little and touched $1,275, thanks to weak USD. The yellow metal could face the resistance of 1,280 and could once again re-test $1,300.

Oil prices jumped as U.S inventories fell by 3.4M Barrel last week. WTI surged to $46 and could decline below such levels.

The most important economic events:

  • GBP Bank of England Rate Decision (MAY 12): (GMT 13:00) – Important – Forecast (0.50%) – Previous (0.50%).
  • GBP BOE Asset Purchase Target (MAY): (GMT 13:00) – Important – Forecast (375b) – Previous (375b).
  • GBP Bank of England Inflation Report: (GMT 13:00) – Important

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.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based. Read More
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