On Wednesday, dollar touched a four-month high against a basket of currencies, backed by strong U.S. data and rising anticipation that the Federal Reserve may hike rates before the end of the year. U.S. dollar index surged to 97.323, the highest level since 10th March.
Euro fell to $1.10 as Euro zone consumer confidence fell markedly in July. Euro managed to close at $1.10 at yesterday’s trading session, in anticipation of the ECB statement today. It is very unlikely that the ECB will announce anything new.
USD touched a critical resistance level of ¥107 and could settle at the said level.
GBP recovered slightly and settled at $1.3216, after a business survey conducted by the Bank of England showed a muted impact from the country's decision to leave the European Union.
On Wednesday, Gold fell to its lowest level in three weeks negatively affected by U.S. strong data and USD. The yellow metal is currently trading at the resistance level of $1,315 and could re-test the psychological level of $1,300. Despite the recent wave of optimism, the precious is unlikely to break such levels.
Oil prices rose by 1% on Wednesday, after the U.S. government reported a nine straight week of crude inventory draws, diminishing some worries in a market concerned about oversupply.
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.