U.S. Dollar Jumps

USD surged vs. a basket of currencies to its highest level in two weeks at the end of last week’s trading session. The greenback positively affected by strong U.S data and expectations on rate hikes. USD rose against JPY for a second straight session and touched its highest level in two weeks vs. Euro.

U.S. retail sales rose 1.3 % in April vs. 0.8 recorded their biggest increase in a year. USD index jumped up by 0.5% and ended the week at 94.60.

Euro declined last week vs. USD to $1.1290, but managed to close above $1.13. From a technical point of view, the pair could re-test $1.14 once again.

On last Friday, GBP fell to its lowest level in three-week vs. USD, negatively affected international monetary fund’s warnings. The IMF has warned “A vote to leave the European Union next month would have a pretty bad to very, very bad consequences." The pound could decline further to $1.42 vs. during the course of the week.

The greenback failed to settle above 109 JPY, and traded around 108.50 JPY. The market is awaiting G7 meeting next Friday.

Gold settled around $1,272 at the end of trading session’s last week. The yellow metal could hit $1,280, as slowing economic growth in China.

Oil prices ended the wave gains on Friday, affected by strong USD. Oil prices pared its losses due to production disruptions in Nigeria. WTI settled above $46 and could negatively affected by USD and decline to $45. 

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.

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