The Greenback surged yesterday vs. a basket of currencies after the Federal Reserve's September meeting minutes confirmed previous expectations for a potential December rate rise. On the other hand, officials in favour of raising interest rates are worried that waiting too long could send the country into recession.
The U.S. dollar index hit an eight-month high vs. a basket of currencies and traded at 98 pips.
On Wednesday, Gold traded flat after settling below $1,250, negatively affected by a strong USD. Technically, the yellow metal could trade between $1,250 and $1,260 during the course of the day.
Euro failed to settle at $1.10, negatively affect by a strong USD. Technically, the single currency could decline further over the next week, if it breaks the support of $1.0960.
GBP moved in a limited range yesterday, due to fears over a “hard Brexit”.
Also on Wednesday, Oil prices fell as much as 1% after the Organization of the Petroleum Exporting Countries (OPEC) reported its September production at eight-year highs, offsetting optimism over the OPEC’s commitment to bringing a global crude oil glut under control.
U.S. crude was negatively affected by a strong USD and traded below $50 before returning to $50.30.
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.