Oil Jumps and Gold Rebounds
Oil Jumps and Gold Rebounds
On Monday, the yellow metal bounced back from its weakest week since November as U.S. employment growth slowed more than expected in September decreasing speculation of a near-term interest rate rise, and as Chinese buyers returned after the Golden Week holiday.
Gold rebound after losing 5% last week, but failed to settle above 200-day moving average of $1,260, negatively affected by strong USD.
Also on Monday, oil prices rose as much as 3% and Brent settled at its highest level in more than a year, after Russia said it would support a proposal by OPEC to cut oil production in order to reverse the drop in global prices. U.S. crude positively affected by such statement and settled above $51. Technically, U.S. crude could touch $52.50 during the course of the week.
Euro declined once again vs. USD as shares in Deutsche Bank, fell as much as 2.5% after news that Germany’s largest bank faces a $14bn (£10.5bn) charge over miss-selling mortgage securities in the U.S. The single currency could be supported at $1.11 in anticipation of FOMC Meeting Minutes this Wednesday.
GBP declined further vs. USD and settled below $1.24. Cable could trade under pressure in the coming days and decline further to $1.22 or $1.20 and it is unlikely to trade above $1.25 or $1.28.
The most important economic events:
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.
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