On Tuesday, the U.S. dollar rose for the second time in a row vs. a basket of major currencies amid strong expectations that the U.S. growth could increase during the next month. Meanwhile, the Greenback supported as traders returned to risk appetite as global geopolitical tensions had declined.
Euro declined materially vs. USD and traded below $1.09 as U.S. yields rose after Macron defeated Marine Le Pen to win the French presidency. Technically, the common currency could decline further as markets await an important data from the U.S., which is expected to be strong and as the Greenback cold be supported by Trump's fiscal stimulus package.
Gold prices fell yesterday to $1,213, its lowest levels in about eight weeks as strength in the U.S. dollar pressured prices for the metal and as risk appetite increased as well. Technically, the yellow metal could decline further to $1,200.
Oil prices failed to manage its gains amid concerns over OPEC's ability to extend supply cuts deal to decrease global supply and rebalancing the oil market.
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.