U.S. Dollar Stands Tall

U.S. dollar supported its gains and rose by 0.30% vs. JPY in anticipation that the Federal Reserve could raise interest rates before the end of the year. The U.S. index added 15 points and traded above 96.30.

USD settled at ¥102.50 vs. JPY and could touch ¥103 during the course of the week.

On Monday, Euro was steady vs. USD after the losses suffered last Friday. From a technical point of view, Fiber is expected to continue to trade in a limited range between $1.10 and 1.11 during the course of the day.

The pound declined once again to $1.30 vs. USD negatively affected by BoE’s decisions and strong U.S. data. Cable hit the psychological level of $1.30 during the course of the day in anticipation of industrial and manufacturing production data, which is expected to decline by 0.2% in June.

Gold settled close to the resistance level of $1,330 after falling by 2% last Friday. The yellow metal could be affected by the U.S. data; to break the resistance level of $1,330 and decline to $1,315 during the course of the week. 

Oil prices continued to rise on Monday, as the OPEC announced that it would find ways to restore stability in the crude market, after prices touched their lowest levels in four months.

U.S. crude oil settled above $43 on calls for output freeze. While the outlook remains negative due to massive political vacuum between Iran and Saudi Arabia and the return of Libyan and Iraqi production to the market as well.

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.