Market Awaits Important Releases

Gold prices settled yesterday as U.S. home re-sales unexpectedly rose in November, reaching their highest level in a decade, as investors rushed into the market to lock in low interest rates in anticipation of further hikes in borrowing costs. The precious metal fell to $1,130.

The U.S. dollar index declined to 103 pips.

The Greenback is awaiting important releases, which are durable goods orders, weekly unemployment benefits and numbers of the U.S. economy in the third quarter.

The Sterling pound declined yesterday vs. USD and dropped to the lowest level in over a month due to the uncertainty surrounding the UK's political and economic landscape following the choice to leave the EU.

Economic data showed unexpected deficits in November but at the same time indicate that the Britain's fiscal policy is moving toward reducing the deficit. Technically, Cable is likely to trade sideways and could decline vs. USD but it depends on how strong the USD is.

Euro settled above $1.04 and hovered around $1.0430 as the Eurozone consumer confidence rose to a 20-month high in December, suggesting the euro-land economy could gather momentum leading into next year.

The updated data showed that euro-zone consumer morale rose for a fourth consecutive month to -5.1 points, touching its highest level since April 2015.

Oil prices declined yesterday to $52.50, following a report showing a surprise build in U.S. crude inventories. Such data are unlikely to have a significant impact on the movement of crude, as it could touch $55 in the coming period.

The most important economic events:

  • USD Durable Goods Orders (NOV P): (GMT: 15:30) – Important – Forecast (-4.5%) – Previous (4.6%).
  • CAD Consumer Price Index (YoY) (NOV): (GMT: 15:30) – Important – Forecast (-1.4%) – Previous (1.5%).
  • USD Personal Consumption Expenditure Deflator (YoY) (NOV): (GMT: 15:30) – Important – Forecast (N/A) – Previous (1.4%).
  • USD Personal Consumption Expenditure Core (YoY) (NOV): (GMT: 17:00) – Important – Forecast (N/A) – Previous (1.7%).

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.

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