News

UK Cabinet Backs Brexit Deal

GBP

The British pound strengthened against the United States Dollar as the hopes of a Brexit deal improved investors risk appetite. The UK Cabinet approved Theresa May's draft Brexit plan as expected. However, the challenges of winning parliamentary approval capped the gains. The GBPUSD rose to a one-week high of $1.3073. Market participants ignored the weaker-than-expected Consumer Price Index and focused on the Brexit headlines.

USD

The dollar index which measures the greenback against a basket of major currencies traded at a low of 96.77 during the Asian session. The optimism of a Brexit deal is allowing investors to flee safety.  On the other hand, the October CPI YoY was at 2.1% versus an expectation of 2.2%. The USDJPY fell to a one-week low of 113.30, and the USDCHF traded at a low of 1.0040.

Equities

Major US indices extended their losses and closed sharply lower, dragged down by the drop in the technology sector. The Dow Jones Industrial Average futures lost 1.1% to 25079, the S&P500 futures fell lost 1% to 2702, and the Nasdaq futures dropped 1.2% to 6782.

Metals

Metal prices appreciated as the dollar dropped along with US Treasury yields. The gold ounce spiked to a one-week high of $1216, and the silver ounce bounced-off the lows to trade at a high of $14.19.

Oil

Oil prices ended a multi-day losing streak despite the buildup in US inventories. The American Petroleum Institute reported that the weekly oil stock rose by 8.790 million barrels last week. Oil prices were trading higher during the day as the huge drop on Tuesday attracted buyers. The West Texas Intermediate futures traded at a high of $67.60, and the Brent futures traded at a high of $57.34. The Energy Information Administration will report the official inventory numbers later today.

Major Economic Events

GMT Country Event Expectation Previous
9:30 UK Retail Sales (MoM) (Oct) 0.2% -0.8%
13:30 US Core Retail Sales (MoM) (Oct) 0.5% -0.1%
16:00 US Crude Oil Inventories 3.182 5.783
16:30 US Fed Chair Powell Speaks     

 
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.COM. 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.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spot FX work, and whether you can afford to take the high risk of losing your money. Read More
Read More
Mail Call Chat