The Greenback recovered yesterday and settled at almost its lowest level in a week as markets await the Federal Reserve Chair Janet Yellen comments who will speaking later on in London.
Meanwhile, with markets awaiting Yellen speech, investors are expecting the discussion of the Federal’s desire to reduce its holdings of government bonds and mortgage-backed securities. A positive outlook from Fed Chair Janet Yellen despite a recent batch of soft U.S. economic data could support the Fed's forecast for another hike in policy rates this year.
Gold prices dropped to 6 weeks lows and settled at $1,240 before recovering. The Precious metal is awaiting Yellen speech, as her comments will be monitored closely by market players for any new insight on policy and the timing of when the Fed will next hike interest rates.
The Sterling pound failed to manage its gains vs. the Greenback despite British Prime Minister Teresa getting the support she needed in parliament to pass legislation. Cable settled near to $1.27 vs. USD and could trade sideways during the day. Technically, the Sterling pound is unlikely to trade above $1.28.
Oil prices continued to recover due to a technical correction following a sharp drop in prices. U.S. crude settled at $43.50 and could settle above $44 in anticipation of the U.S. inventories data, which will be released tomorrow.
The most important economic events:
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