News

All Eyes on Fed Reserve’s Latest Policy Meeting

Global markets are awaiting the outcome of four of the major central banks worldwide this week.  Despite the U.S. Federal Reserve, the Bank of England, the Swiss National Bank and the Bank of Japan facing a lack of inflation, none of them will change its policy before the EU referendum.

USD index settled at 94.63 at the end of last week’s trading session.

On Saturday, two polls showed voters were still closely split over whether to end UK's EU membership, a day after another survey put the 'Brexit' campaign 10 points ahead, asserting the contradictory polling less than 14 days before referendum on 23rd June .

The pound may lose one-quarter of its value if the U.K. votes to leave the European Union in its upcoming referendum. GBP is trading at $1.42, the lowest level in two months. 

EUR declined to $1.1240 vs. USD, negatively affected by weak GBP. The fiber could fall further to $1.12 as the pair is awaiting the outcome of the Federal Reserve’s latest policy meeting on Wednesday.

On Friday, Gold rose to its highest level in almost three weeks, as investor risk aversion lifted appetite for the yellow metal, putting it on track for a second weekly gain in a row. The precious metal surged about 2% last week after weaker than expected U.S. payrolls data reduced expectations of an imminent U.S. interest rate hike.

Oil prices fell at the end of last week’s trading session, negatively affected by weak USD. WTI traded below $49 and could settle below $50 before the Federal Reserve’s latest policy meeting on Wednesday.

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