USD

The Greenback dollar edged lower yesterday vs. a basket of major currencies, after U.S. President Donald Trump’s eldest son released emails between him and Rob Goldstone, regarding the involvement of Russian officials in the U.S. presidential campaign, however; Wall Street managed to pare losses by the end of the session.

Today, Traders are waiting for U.S. Federal Reserve Chair Janet Yellen’s semiannual monetary policy testimony before Congress. Her comments will be watched closely for any new insight on the timing of the next U.S. rate raise.

• The U.S. dollar index, which measures the U.S. currency against a basket of six major rivals, fell as much as 0.1% to settle at 95.551 pips.

EUR

The single currency settled vs. the Greenback, with EUR/USD at 1.1457 after touching a 14-month peak of 1.1489.

GBP

The Sterling pound edged lower for the fourth day after the Bank of England's deputy governor, Ben Broadbent, said that he’s not ready to support an increase in interest rates.

Cable fell as much as 0.2% to settle at $1.2819 as of 7:33 a.m. in London, the weakest level since 28th June.

• In other currency news, the Canadian dollar edged higher against its U.S. counterpart, with USD/CAD fell to 1.2906 as trader also anticipated the Bank of Canada's interest rate decision.

Gold

Gold prices rose in European trade on Wednesday, with investors awaiting  to see if Yellen could signal whether the Fed is on track to make a third rate hike before the end of the year.

Meanwhile, Spot gold rose as much as 0.1 % to settle at $1,218.46 by 07:19 GMT.

Oil

Oil prices rose more than 1.5%, with the U.S. fuel inventories declining and the U.S. government crude production cut for next year.

U.S. West Texas Intermediate (WTI) crude futures rose as much as 1.7% or 78 cents, while Brent crude futures rose as much as 1.6% or 76 cents, to settle at $48.28 by 04:29 GMT.

The most important economic events:

• USD Fed Releases Chair Yellen's testimony to Congress: (GMT 12:30) – Important
• CAD Bank of Canada Rate Decision (JUL 12): (GMT 14:00) – Important – Forecast (0.75%) – Previous (0.50%).

Disclaimer
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.