USD Settles and Markets Await the BoE Monetary Policy Meeting

USD

On Wednesday, USD was traded sideways vs. a basket of major currencies after President Donald Trump fired FBI Director James Comey. The Greenback fell following the decline of risk appetite, with investors being shocked.

• The dollar index (DXY), which measures the greenback against a basket of currencies, rose slightly to 99.50 yesterday.

JPY

However, the Greenback settled vs. its major counterparts; it rose vs. JPY and was traded above ¥114. USD managed its gains vs. the Japanese Yen as risk appetite increased, after Emmanuel Macron defeated Marine Le Pen to win the French presidency.

GBP

The Sterling pound fell to $1.2930 as markets await the Bank of England's (BoE) monetary policy meeting and quarterly Inflation Report. While, no changes to policy are expected. Technically, Cable could hit $1.30.

Gold

Gold prices edged down yesterday, however risk appetite declined after President Donald Trump fired FBI Director James Comey.

Gold is hovering below $1,220 and could trade sideways and decline to $1,200 during the next period.

Oil

Oil prices rose as much as 3%, on falling the U.S. crude stocks and after Iraq and Algeria joined Saudi Arabia in supporting an extension to supply cuts deal. However, prices could settle below $50, as the United States, Libya and Nigeria could increase their output.

The most important economic events:

• GBP Bank of England Rate Decision (MAY 11): (GMT 11:00) – Important – Forecast (0.25%) – Previous (0.25%).
• GBP BOE Asset Purchase Target (MAY): (GMT 11:00) – Important – Forecast (435b) – Previous (435b).

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.