All Eyes Turn To the UK’s Economy

All Eyes Turn To the UK’s Economy

On Wednesday, Gold retreated from its highest levels in three weeks, giving back most of what they gained a day earlier.
The precious metal failed to settle above the 200-day moving average of $1,270.
Technically, the yellow metal could trade sideways and touch $1,280 due to the recent volatility in the market.

The U.S. dollar index fell as much as 10 points to settle at 98.60.
Markets are awaiting important data from U.S: unemployment benefits, durable goods, and real estate data.

GBP settled at $1.2245 yesterday, affected by some positive comments from junior Brexit minister David Jones.

Markets are eagerly awaiting the UK’s Gross Domestic Product (GDP) data for Q3, which is the first reading after the “Brexit”. Technically, a lower than expected reading should be taken as bearish for the GBP and could decline further to $1.20.

Euro surged vs. USD and settled at the resistance of $1.0960. Technically, it is more likely that the single currency will trade sideways between $1.0960 and $1.0880 until the end of the week.

On Wednesday, Oil prices settled below $50 and hit their lowest level in a month. U.S. crude declined to $49 to settle at their lowest level in roughly three weeks.

The most important economic events:

  • USD Durable Goods Orders (SEP P): (GMT 14:30) – Important – Forecast (0.1%) – Previous (0.1%).
  • USD Durables Ex Transportation (SEP P): (GMT 14:30) – Medium – Forecast (0.2%) – Previous (-0.2%).
  • USD Pending Home Sales (YoY) (SEP): (GMT 16:00) – Medium – Forecast (N/A) – Previous (4.0%).

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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