Gold Pares Losses
Gold Pares Losses
USD
The Greenback fell last week vs. a basket of major currencies, negatively affected by Yellen’s speech, as she did not talk about interest rates hike. The U.S. dollar index fell as much 1% and settled at 101.35 pips.
Gold prices fell to their worst weekly losses in the year, as Janet Yellen said that the Federal Reserve is likely to announce an interest-rate hike at its meeting later this month; and that is if employment and inflation continue to meet expectations. In addition, the market odds of a March increase in U.S. interest rates shot up to 80%.
Gold
Gold settled at $1,235 in anticipation of an important data during the week. Technically, the yellow metal could trade sideways between $1,221 and $1,241 in anticipation of the U.S. Nonfarm payrolls.
JPY
The Greenback pared its gains vs. Japanese Yen and settled below ¥114 at last week, as a Japanese consumer index (CPI) rose more than estimated for the first time since December 2015. However, Japanese exports to the United States could be negatively affected by the uncertainty over U.S. foreign policy under Trump’s administration. Technically, USD could hit new highs vs. JPY and touch ¥115 during the next period, while it could re-test ¥113.
Oil
U.S. crude oil rose again at the end of last week and hit $53.20 amid conflicts near the Libya's biggest oil terminal.
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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