Commodities Rise after Friday's Attempted Coup in Turkey

Commodities Rise after Friday's Attempted Coup in Turkey

U.S. stock index futures were flat on Friday for third week in a row backed by strong U.S. data.

U.S. retail sales increased more than expected in June as Americans bought motor vehicles, promoting views that economic growth promoted in the 2nd quarter.

China's economy grew 6.7% in the second quarter from a year earlier.  Such good data could help the Fed. raise interest rates later on this year.  The U.S. dollar index surged by 70 pips and traded at 96.70.

Gold negatively affected by U.S. retail sales before trading in a high level, thanks to Friday's attempted coup in Turkey. The yellow metal traded at $1,338 and could decline to $1,330 and settle around.

USD surged against GBP backed by strong U.S. data. On the other hand, Andy Haldane chief economist at the bank of England urges quick and decisive response to U.K. economic uncertainty, including rate cut, quantitative easing and cheap loans.

GBP pared some of its gains of $1.32 and traded at $1.3150.  From a technical point of view, Cable is under pressure and could touch $1.30 this week. 

On Friday, Japanese yen declined to its lowest level in three-weeks vs. USD and posted its largest weekly loss against the greenback in 17 years, as Chinese economic data diminished the appetite for the yen as a haven from risk.  JPY traded below ¥105 and could re-test level of ¥106 and ¥107.

Oil prices rose on Friday, positively affected by Friday's attempted coup in Turkey. Crude traded above $46, thanks to Friday's attempted coup in Turkey but it could decline to $45 once again.

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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