The U.S. dollar declined yesterday negatively affected by weaker-than-expected economic data. Federal Reserve will announce its latest monetary policy stance later on today after concluding a two-day FOMC meeting that could hike rates a 25-basis-point for the second time this year.
Meanwhile, investors will also pay close attention to details of the Fed's plan to reduce its $4.5 trillion balance sheet during the next period.
Gold prices pared much of their earlier losses and settled yesterday at $1,266 with U.S. producer prices index (PPI) unchanged in May. Meanwhile, the market awaits directions from the outcome of a two-day US Federal Reserve meeting, as FOMC is expected to raise interest rates and to give indications on its monetary policy for the rest of the year. Technically, if Fed keeps rates unchanged, the yellow metal could hit $1,300.
GBP recovered yesterday and traded at $1.2750 as UK CPI saw an annual inflation hike to 2.9% in May , a four-year high. Technically, GBP is unlikely to trade above $1.28 amid political uncertainty following last week's shock UK election result.
Oil prices boosted yesterday as Saudi Arabia outlined cuts to customers in July as well as deeper cuts in allocations to the United States. Meanwhile, Oil prices are awaiting U.S. inventories data, which will be released later one today.
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.