On Wednesday, the U.S. Dollar recovered vs. a basket of major currencies, boosted by a strong U.S. data. The U.S. pending home sales rose to 10-month high, such data could help the Fed. to increase its rates during the next period.
The Sterling pound settled at $1.2430. Technically, Cable is trading under pressure as Scottish lawmakers back call for independence vote. However, Theresa May has refused to agree to a second Scottish referendum before spring 2019.
Also on Wednesday, Gold swung between a strong USD and “hard Brexit” worries and traded sideways between $1,245 and $1,255.
The yellow metal faced a critical support on tensions between Britain and the European Union ahead of Brexit negotiations. Technically, the precious is awaiting an important news, which is Gross Domestic Product (GDP) for Q4.
Euro declined yesterday vs. USD and settled below $q.0750, on worries over interest rates expectations.
U.S crude rose as much as 2% yesterday, after an official data showed a weekly increase in U.S. crude inventories that was below some market expectation. U.S. Crude inventories rose by 867k barrels in the week ending March 24, compared with markets’ expectations for an increase of 1.4 million barrels. U.S. crude hit $49.50 and could settle above$50 by the end of the week.
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.