Oil Stands Tall

Gold settled yesterday after the fluctuation of the U.S. dollar and amid concerns over OPEC’s deal. 

The U.S. dollar index rose to its highest level at yesterday’s trading session as U.S. economy expanded in the second quarter.  On the other hand, the number of pending home sales declined in August to the lowest level since January. The U.S. dollar index settled yesterday at 95.40. Gold settled at $1,320 and could decline further to $1,330 in anticipation of U.S. Nonfarm Payrolls.

On Thursday, Euro rose slightly vs. USD after the European Commission’s Economic Sentiment Indicator (ESI) for the euro area rebounded. The single currency touched $1.1250 and could settle above such level by the end of the day.

Oil prices rose as much as 3% after OPEC members struck a deal to cut oil production in eight years. However, some are skeptical that OPEC's first planned output cut would not be enough to return to a balanced market. U.S. crude settled at $47.50 at the end of yesterday’s trading session. Technically, crude could settle above such level by the end of the week. Settling above $47.50 is a positive indicator as it may open the door for U.S. crude to experience further rises during the course of the next week.

The most important economic events:

• EUR Euro-Zone Consumer Price Index Estimate (YoY) (SEP): (GMT 11:00) Important – Forecast (0.4%) – Previous (0.2%).
• EUR Euro-Zone Consumer Price Index - Core (YoY) (SEP A): (GMT 11:00) Important – Forecast (0.9%) – Previous (0.8%).
• CAD Gross Domestic Product (YoY) (JUL): (GMT 14:30) Important – Forecast (1.0%) – Previous (1.1%).
• USD Fed's Kaplan Speaks in Dallas: (GMT 19:00) 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.