Carney cautions on potential of Brexit damage

USD

The greenback continued its run with the bulls owing to discussions about tax cuts. President Donald Trump gave further details on the GOP proposal for fiscal reform while promising that they will endeavour to accomplish this by the end of 2017. US final GDP was also printed an increase to 3.1% from 3.0% , backing up FOMC December hike expectations. Core PCE price index along with personal spending and income data, are on the tap today.

EUR

The common currency was slightly weaker against its contemporaries as economic data printed weaker than expected results. The preliminary CPI showed a minor 0.1% increase as anticipated while Germany's GfK consumer climate index declined to 10.8 from 10.9 instead of increasing to the consensus at 11.0. French consumer spending and German retail sales are due today but the Eurozone flash CPI readings may generate more market reaction.

GBP

The British pound made a bit of a recovery in spite of the Bank of England Head Mark Carney stating that the central bank may not be able to do much to reverse the effects of Brexit. The UK Prime Minister Theresa May followed this up by stating that work would be needed to restore finances back to health. The attention may shift back to economic data today as the British economy will its final GDP reading and its current account balance. Mortgage approvals data and net lending to individuals are also lined up.

CHF

The Swiss currency ran will the bulls in spite of the absence of top-tier data, with risk aversion in play in the markets. The KOF economic barometer is due today and it is expected prints an increase to 105.5 from 104.1. This may allow the franc to extend its winning streak.

JPY

The Japanese currency had a topsy-turvy day as the yen reacted mostly to currency-specific events while awaiting for more clues on the snap elections. The North Korean dilemma has kept the lower-yielding currency in demand but the markets are also wary of possible downside surprises in today's release of household spending, core CPI, preliminary industrial production data and retail sales.

Gold

Gold traded little changed on Friday amid pressure from a stronger dollar, but was headed for its biggest monthly fall this year amid rising prospects of a U.S. rate hike in December.  Spot gold  was nearly unchanged at $1,286.96 per ounce, on track to register a 2.5 percent decline in September, its largest monthly fall so far in 2017 and the biggest since November 2016.

Oil

Oil prices were mixed on Friday, but both Brent and U.S. crude were set to chalk up another weekly gain as investors bet that efforts to cut a global glut are working and that the demand outlook is improving. U.S. crude was down 8 cents at $51.48 a barrel at 0641 GMT, after earlier rising slightly. Still, the contract is heading for a fourth consecutively weekly gain and is on track for a 9 percent advance this month. Brent rose 1 cent to $57.42 a barrel, heading for a fifth weekly climb and a nearly 10 percent gain for September.

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.