US Dollar Holds Gains on Safety Demand

USD

The dollar index, which measures the greenback against a basket of major currencies, inched higher to 100.44 on rising demand for safety. Market participants are afraid about a second wave of infections as countries lift restrictions taking into consideration the experience of South Korea and Germany. On the other hand, Federal Reserve officials continued to talk down the possibility of negative interest rates. The EURUSD dipped to $1.0783, the GBPUSD declined to $1.2286, and the AUDUSD tumbled to $0.6431.

Equities

Major US stock index futures edged lower as fears of second wave infections offset the efforts of reopening the economy. The US Treasury Secretary Steven Mnuchin urged governors to reopen states as soon as possible to avoid further deterioration in the economy. However, some countries are facing a rebound in COVID19 cases as they lifted their lockdown measures fast. The Dow Jones Industrial Average futures declined to 23882, the S&P500 futures eased to 2894, and Nasdaq futures hovered around 9250.

Gold

Gold prices continued to trade in a tight range awaiting fresh fundamental drivers. The price of a gold ounce has been posting lower highs and higher lows for the past month and is currently trading slightly above $1700. The price of a silver ounce held steady near $15.50, and palladium futures settled at $1840.

Oil

Oil prices held steady near a one-month peak awaiting fresh insight into the oil market developments. Saudi Arabia pledged to cut output further to stabilize the market. The West Texas Intermediate crude June delivery inched higher to $24.81, and Brent blent July delivery held steady near $30.

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.