British Pound Settles High

On Monday, the single currency recovered from 11-month lows, positively affected by many political factors. In France, ex-President Nicolas Sarkozy was ousted from the election race in a party primary over the weekend. The two ex-prime ministers Francois Fillon and Alain Juppe will meet in a runoff next Sunday for the nomination to be France's conservative candidate for the May presidential election.  

In other news, it was announced on Sunday that German Chancellor Angela Merkel will run for a fourth four-year-term which is being viewed by experts as euro-positive.

The U.S. dollar index fell as much as 20 pips and settled at 101 pips.

Euro returned to $1.06 and failed to maintain its gains vs. USD yesterday. Technically, it could be affected by lack of data and could trade sideways.

Also on Monday, GBP rose vs. USD and settled at $1.25 as markets digested the words of Prime Minister Theresa May when she said yesterday that the Government was working to avoid a "cliff's edge" Brexit transition. Cable failed to settle above $1.25 yesterday and could re-test such level during the day.

Gold prices rose, recovering from a five-and a half month low as the Greenback shed some of the huge gains made last week on bets that future U.S. President Trump's plans for fiscal stimulus could pose inflationary. The precious metal settled at $1,210 before re-testing $1,210. Technically, the yellow metal could touch $1,230 during the week.

Oil prices rose as much as 3% on Monday the highest level reached in three weeks as the U.S. dollar edged lower and oil-producing countries neared an oil production cut deal. WTI touched $48.50 yesterday and could jump to $50.

The most important economic events:

  • USD Existing Home Sales (MoM) (OCT): (GMT: 17:00) – Medium – Forecast (0.0%) – Previous (3.2%).

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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