Oil prices rose yesterday amid expectations that Members of the Organization of the Petroleum Exporting Countries (OPEC) have agreed to limit crude output. On the other hand, Oil prices fluctuated earlier in the day after the U.S. Energy Information Administration (EIA) reported that the domestic crude stockpiles declined for a fourth week in a row. U.S. crude settled above $47, and could touch new highs if such expectations come true.
Federal Reserve Chair Janet Yellen has spoken before the House Financial Services Committee about the U.S. financial policy. The Federal Reserve is also considering stress tests requiring more capital from the big banks, Yellen said during the remarks. She also noted that commercial and industrial lending figures show strong growth.
Yellen also said the biggest eight banks have also increased their holdings of high-quality assets. The U.S. dollar index settled yesterday at 95.30.
European indexes closed higher yesterday, backed by a strong performance in the basic resources stock sector.
Euro recovered at the end of yesterday’s trading session and traded above $1.12.
Gold prices declined to a one-week low on a stronger USD and as traders turn their attention to Janet Yellen’s testimony.
On Wednesday, GBP fell to $1.30 after the BoE deputy governor Minouche Shafik expected the central bank would "at some point" need to add monetary stimulus to UK's economy to ease the blow dealt by Brexit.
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.