Factory activity in New York fell sharply in May after expanding for two-month; and may postpone raising speculation about U.S. interest rates soon. The Empire State manufacturing index slumped to -9.0 in May, after reaching 9.6 in April.
Despite the pound surging to $1.144 vs. USD, it failed to settle above, negatively affected by ICM opinion poll. The ICM recent poll finds the support for Britain to stay in the EU has increased by eight points. The poll showed that, remaining in the EU is eight-point clear of a leave, at 47% compared with 39%, and with 14% undecided.
EUR traded above $1.13 vs. USD, negatively affected by EU economic data. The fiber is awaiting the U.S. inflation data later on today.
Japanese yen fell on Monday and traded at 109 levels, as risk appetite improved with the rise in oil prices. Japan signaled its willingness to intervene in the FX market to weaken the Yen.
Traders will turn their attention to U.S. inflation data as it may give a strong signal for the Fed to start raising interest rates.
Gold prices climbed on Monday, as stock markets declined after weak data from China, which boosted demand for the metal as a safe heaven. On the other hand, the precious metal failed to hold its gains and declined back down to its opening levels. The yellow metal is awaiting the inflation data of U.S and UK.
Oil prices were up, thanks to a ramp up in Nigerian crude. WTI traded higher at $47.90 and could touch $48.
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.