All Eyes on UK General Election 2017 and ECB’s Policy Announcement

USD

The U.S. dollar managed to pare its losses after Comey's statement as it is alleviates the fears that could lead to an indictment of the US President.

• The U.S. dollar index (DXY), which measures the Greenback against a basket of currencies, settled at 96.60 pips yesterday, in anticipation of UK general election 2017.

EUR

The common currency was under selling pressure ahead of the European Central Bank's policy announcement. Meanwhile, Bloomberg, citing unnamed euro zone officials, said the central bank was preparing to lower its annual inflation forecast for the next three years.

GBP

All eyes on the UK, with Britain going to the polls to pick a new government in the general election 2017. Technically, if the Conservatives win a majority, Cable could hit new highs and touch the psychological $1.35 vs. USD.

Gold prices

Gold prices edged lower yesterday to $1,284, as USD recovered and as markets await ECB’s decision and UK general election 2017.

Oil

Oil prices fell materially yesterday after the U.S. government reported an unexpected increase in crude inventories as the U.S. crude stocks rose 3.3 million barrels to 513 million barrels.

The most important economic events:

• EUR European Central Bank Rate Decision (JUN 08): (GMT 11:45) – Important – Forecast (0.00%) – Previous (0.00%).
• EUR ECB Marginal Lending Facility (JUN 08): (GMT 11:45) – Important – Forecast (0.25%) – Previous (0.25%).
• EUR ECB Deposit Facility Rate (JUN 08): (GMT 11:45) – Important – Forecast (-0.40%) – Previous (-0.40%).
• EUR ECB President Mario Draghi Holds Press Conference: (GMT 12:30) – 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.