Pound Holds Steady as May Wins No_Confidence Vote

GBP

The British Pound was stable against the United States dollar as May's government won the "no-confidence" vote. It has been a tough week for Theresa May after MPs defeated her Brexit deal on Tuesday. Now, she has to arrange a plan B in order to submit it on Monday. However, the latest developments opened the doors for several scenarios. The GBPUSD is trading near 1.2860, and the GBPJPY is hovering near 140.

USD

The dollar index which measures the greenback against a basket of major currencies rose to a high of 96.23, supported by rising European risks. The latest comments of ECB president concerning the growth in the Eurozone and the Brexit uncertainty raised the demand for the dollar. Moreover, the Beige book revealed that the US economic outlook remained positive. However, the report hinted to some weak points and addressed the effect of trade tariffs on the manufacturing costs. The USDJPY rose to a two-week high of 109.20, and the EURUSD tumbled to a two-week low of $1.1370.

Metals

Palladium rose to a record high amid lower supply and increasing demand for the industrial metal. Since the beginning of the year, Palladium climbed more than 8% to trade at a high of $1373. Meanwhile, the gold ounce remains hovering in a $20 range as market participants await fresh market fundamentals. From a technical perspective, the precious metal formed a golden cross (50-day simple moving average crosses above the 200-day simple moving average). The price of a silver ounce remained stable near $15.60.

Oil

Oil prices were almost unchanged after the EIA weekly report. The Energy Information Administration reported that the US weekly crude oil inventories dropped by 2.683 million while production jumped to a record of 11.9 million barrels per day. The US oil production climbed almost 2.4 million barrels since January 2018. The West Texas Intermediate crude futures traded near $52 per barrel, and the Brent futures held steady near $61 per barrel.

Major 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.COM. 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.