On Monday, U.S. dollar failed to manage its gains as traders cautiously awaited the results of the Federal Reserve and Bank of Japan policy meetings that will both conclude on Wednesday. The U.S. dollar index fell yesterday to 95.75.
Gold settled at the resistance level of $1,315 amid lack of U.S. economic data. From a technical point of view, the yellow metal could tread water and decline to the psychological barrier of $1,300, during the course of the day in anticipation of central banks’ decisions.
Euro surged vs. USD and touched $1.12 at yesterday’s trading session, positively affected by the lack of US economic data. Technically, the single currency is unlikely to trade above such level during the course of the day as markets are awaiting the Federal Open Market Committee (FOMC) policy meeting.
Yesterday, GBP failed to pair its losses vs. USD and settled at the support of $1.30.
On Monday, Oil prices declined after Venezuela's oil Minister Eulogio Del Pino said “Global oil supply of 94 million barrels per day needs to fall by about a tenth if it is to match consumption.” On the other hand, U.S. crude oil rose as much as 2% and traded above $44, before returning and losing all the gains recorded.
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.