US Dollar Up & Oil Down

The U.S. dollar rose at the beginning of the week, after touching the weakest weekly performance in three-month’s.  Meanwhile, JPY rose vs. USD thanks to the BOJ’s recent decisions. USD lost 2% last week vs. a basket of currencies negatively affected by weak US data.

US Management’s Manufacturing PMI came in at 52.6 in July, down from 53.2 in June. On the other hand, the US dollar index rose by 15 pips and traded at 95.70.

 US crude prices fell at the beginning of the week, after briefly breaking below $40 a barrel for the first time since last April, affected by a survey showing output in OPEC reached record highs in July amid the biggest increase of US oil rigs in 2 years.

Gold settled during yesterday’s trading session, thanks to strong USD. The yellow metal could settled at $1,350 during the course of the day.

The Pound pared its gains as the UK manufacturing purchasing managers’ index (PMI) stood at 48.2% in July – down from 52.4 in June. That’s the worst pace of contraction since February 2013.

Euro was affected a little as Manufacturing PMI in the Euro Area nudged down to 52.0 in July from 52.8. From a technical point of view, the single unit currency could decline further during the course of the week.

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.