U.S. dollar soared yesterday as U.S. consumer sentiment rose in August to its highest level in 11 months. The ADP National Employment Report will be released today and could show growth of 175k. The U.S. dollar index rose by 0.5% yesterday and settled above 96 pips.
Gold prices settled below $1,315, negatively affected by strong USD and could decline further during the course of the week in anticipation of U.S. nonfarm payroll data. Technically, the yellow metal could trade under pressure and decline to the psychological level of $1,300.
On Tuesday, Economic confidence in the Eurozone declined sharply in August, to its lowest level since March, suggesting that the UK’s vote to leave the European Union may be starting to hit sentiment across the EU.
Euro fell to $1.1150 yesterday and could decline further to $1.11 during the course of the day.
USD jumped to the highest level in four weeks vs. JPY and touched ¥103, thanks to strong U.S. data. The pair is likely to trade in a limited range at ¥103.50 in anticipation of U.S. nonfarm payroll data.
Oil prices fell for the second consecutive trading session on Tuesday, amid dollar strength. U.S. crude traded below $46.50 and could trade sideways between $46 and $47.
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.