Dollar Pauses Slide ahead of GDP Figures

USD

The preliminary reading of the second-quarter GDP will be released later today, where there are plenty of expectations that the figure could be the weakest in history. Yesterday, the Federal Reserve finished its two-day monetary policy meeting and decided to keep its settings unchanged. A presser followed the decision, where the Fed's chairman Jerome Powell stated that the recovery is unlikely until people feel safe, the economic activity is still "well-below" pre-pandemic levels, but the Federal Reserve will do all it takes and as long as it takes to ensure that the economy is back on the right track.

Equities

Major US stock index futures continued to trade in a tight range for the week, awaiting a fresh driver. The fact that the Federal Reserve will continue to support the economy eases investors woes, but also the Fed declared that the economic activity remains well-below January levels, and the rising coronavirus cases are weighing again on the economic recovery. On the other hand, it could take some time before the US lawmakers can agree on the new relief bill. The Dow Jones Industrial Average futures eased to 26228, the S&P500 futures dropped to 3222, and Nasdaq futures declined to 10545.

Metals

Gold prices retested Tuesday's high during the Fed's press conference but eased after to test $1947 as the European trading session started. Meanwhile, the price of a silver ounce dropped to $23.00, and palladium futures declined to $2158.

Oil

Oil prices continued to trade in a tight range despite the sharp decline in US inventories. The US Energy Information Administration reported a drop of 10.612 million barrels in US crude inventories. However, the fear of the impact of the continuing spread of COVID19 on the economic recovery weighed on prices. The West Texas Intermediate crude September delivery fell to $40.75, and Brent blend September delivery descended to $43.27.

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.