GBP Stands Tall vs. JPY

The Pound recovered yesterday and touched its highest level in three years vs. Japanese yen, as risk appetite improved after the confirmation of the UK's new leader eased uncertainties.

GBP surged by 2% vs. USD and traded at $1.33, the highest level since the EU referendum.

The U.S. dollar index fell by 0.5% and settled at 96.55, negatively affected by high-risk appetite.  

On the other hand, USD recovered vs. JPY and traded at ¥105, the highest level since 24^th June. Japanese Yen fell, negatively affected by stimulus comments made by Japanese Prime Minister Shinzo Abe.

Euro fell to $1.1050 amid lack of US economic data.

On Tuesday, Gold prices declined for a second straight day as global equities surged on easing political tensions in the UK. The yellow metal traded at $1,330.

Oil prices recovered on easing political uncertainty in Britain. WTI traded above $46.50 during yesterday’s trading session, waiting for U.S. inventories that are likely to put pressure on prices and could be traded at $46.

The most important economic events:

• USD Import Price Index (YoY) (JUN): (GMT 14:30) – Important – Forecast (-4.6%) – previous (-5.0%).
• CAD Bank of Canada Rate Decision (JUL 13): (GMT 16:00) – Important – Forecast (0.50%) – previous (0.50%).
• CAD Bank of Canada Releases Monetary Policy Report: (GMT 16:00) – 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.