Markets Await Yellen's Speech

U.S. stocks surged at the beginning of the week, as polls suggested Britain would vote to stay in the EU. The British pound surged by 2% vs. USD as polls show a small boost to the ‘Remain’ campaign.

The U.S dollar index lost 60 pips and settled below 93.72. 

The global markets are awaiting Federal Reserve Chair Janet Yellen’s speech, as Yellen could mention the economic outlook and the possibility of raising interest rates during the coming period.

GBP traded at $1.47, which represents a 200-day moving average, which could push Cable to decline or pare its gains.

Euro settled at $1.13 vs. GBP, thanks to the strong position of GBP and the lack of economic data. The single currency is awaiting important data from German; such data could push the pair to close the price gap, which opened this week.

Gold traded at $1,290 as it failed to settle above the psychological levels of $1,300.

Oil prices surged again as polls showed a lower likelihood of Britain leaving the EU. On the other hand, crude oil prices were supported by the monthly oil market report as it could reach a balance during the second half of this year. WTI touched $50 and could re-test such levels today.

The most important economic events:

• EUR German Constitutional Court Rules on Legality of ECB's OMT: (GMT 10:00) – Important
• EUR German ZEW Survey (Economic Sentiment) (JUN): (GMT 11:00) – Important – Forecast (4.8) – Previous (6.4).
• GBP BOE Holds Second Additional ITLR Operation Around EU Vote: (GMT 11:00) – Important

Disclaimer
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.