Gold prices declined yesterday, negatively affected by profit taking. On the other hand, the U.S. service-sector activity fell in August to its lowest level in more than six and a half years. Such data could have an effect on the U.S. interest rates hike. The U.S. dollar index pared its gains and settled below 95 pips at the end of yesterday’s trading session.
Gold declined to $1,345 after touching $1,357. Technically, the yellow metal could decline to $1,340 by the end of the week.
On Wednesday, GBP declined to $1.34 vs. USD as reports showed declines in UK manufacturing output in the aftermath of the nation’s vote to leave the EU.
The index fell 0.9% month-on-month vs. an expected decrease of 0.4%.
On Wednesday, Euro failed to manage its gains vs. USD as industrial production in Germany dropped unexpectedly in July, increasing worries of a slowing economy at the start of the third quarter. Industrial production in Germany fell by 1.5% in July vs. an expected increase of 0.2%. The single currency settled at $1.1240, negatively affected by such data.
Euro is awaiting the ECB decision, which will be released later on today.
Oil prices continued its volatility during yesterday’s trading session affected by Eurozone industrial production data. U.S. crude settled above $45.50. Technically, oil-price volatility could continue until the end of the week.
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.