News

Dollar Index Holds Firmer Ahead of Data

USD

The dollar index which measures the greenback against a basket of major currencies held firmer near 97 ahead of the retail sales data. The recent economic data suggested that the US economy could be slowing down. The last important data to be released ahead of the anticipated Federal Open Market Committee meeting next week. A strong retail sales reading could support the US dollar and reduce the chances of an interest rate cut soon by the Fed. On the other hand, the growing geopolitical and trade tensions are weighing on the global economic outlook where the US Treasury yields resumed their downtrend yesterday. The US 10-year yields dropped to a one-week low of 2.067%, the EURUSD tumbled to $1.1270, and the GBPUSD drifted lower to $1.2663.

Metals

Gold prices soared as US treasury yields tumbled amid growing geopolitical and trade tensions. The price of a gold ounce traded at $1358, the highest since April 2018, the price of silver ounce rose to $15.04, and palladium raced to a new six-week high of $1455.

Oil

Oil prices drifted lower during the Asian session erasing part of the gains earned following the incident in the Gulf of Oman. Since the United States imposed sanctions on Iran's oil exports, three similar incidents took place, which suggests an escalation in geopolitical tensions. Historically, oil prices were key gainers from geopolitical tensions. On the other hand, market participants are awaiting the next OPEC+ meeting amid mounting chances of an extension for supply cuts. The West Texas Intermediate crude futures traded at $52.15, and Brent futures hovered near $61.50.

Major Economic Events

GMT Country Event Expectation Previous

12:30

US

Core Retail Sales (MoM) (May)

0.5%

0.1%

12:30

US

Retail Sales (MoM) (May)

0.7%

-0.2%

12:55

UK

BoE Gov Carney Speaks  

 

 

13:15

US

Industrial Production (MoM) (May)

0.2%

-0.5%

14:00

US

Business Inventories (MoM) (Apr)

0.4%

0.0%

17:00

US

U.S. Baker Hughes Oil Rig Count

 

789


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. 77.81% 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