On Wednesday, the Greenback recovered as the Federal Reserve hiked interest rates by 25 basis points, recorded as the second rate hike of 2017.
However, it was agreed to hike rates even with the anticipations of inflation running well below the central bank's target.
Moreover, the Federal Reserve gave more detail on how it will unwind its $4.5 trillion balance sheet.
Gold prices failed to manage its gains and declined to $1,260. Technically, the yellow metal could get support for the current levels, as markets await important data from U.S. Otherwise, the precious metal could further decline to the key support of $1,240.
The Sterling pound settled below $1.2750 vs. USD, in anticipation of Bank of England’s (BoE) policy meeting that might disclose its inflation and growth forecasts for the coming period amid prevailing political uncertainty and the impending Brexit negotiations. Not to forget that Cable also awaits Mark Carney’s speech later on today.
Oil prices fell materially yesterday after U.S. government data showed a build in U.S. crude stocks and an increase in gasoline stockpiles and crude production. U.S. crude traded below $45 and could decline further during the next period.
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.