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Markets await Janet Yellen's Testimony

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USD

On Tuesday, the Greenback pared its gains against its major rivals as the rise in sovereign bond yields paused, with traders awaiting Fed Chair Janet Yellen's testimony for fresh cues on monetary policy.

 Meanwhile, investors are awaiting the U.S. data on inflation and retail sales, which will be released this Friday. 

  • The U.S. dollar index, which measures the Greenback’s strength vs. basket of major currencies, was up 0.08% to 96.10.

EUR

Euro edged lower to $1.1394 from $1.1400. The common currency could trade under pressure tomorrow following a speech by European Central Bank policymaker Benoit Coeure, as traders are anticipating that Coeure could continue to strike a dovish tone towards the ECB’s future monetary policy program.

JPY

The dollar rose as much as 0.33% vs. JPY, to settle at ¥114.44, near four-month highs as the Japanese government bonds came under renewed pressure yesterday. Technically, JPY could trade under pressure during the next period as the BOJ reiterated the need to continue with its massive stimulus program.

Gold

On Tuesday, Gold futures for August delivery fell as much as 0.13% to settle $1,211.60%, giving up some gains from Monday. The yellow metal is trading under pressure amid a move by traders into higher yielding assets, in anticipation of interest rate hikes from the world's major central banks. Meanwhile, traders will focus on Fed Chair Janet Yellen's testimony on monetary policy, as a hawkish outlook from the Fed could push the precious metal to test multi-month lows.

Oil

Oil prices edged up yesterday, but uncertainty over Nigerian and Libyan production cuts has prevented OPEC to push up oil prices. U.S. crude futures rose as much as 0.4% or 17 cents to settle at $44.40 a barrel. Meanwhile, markets are awaiting the upcoming committee meeting in Russia later this month, as several key OPEC ministers will meet non-OPEC country on July 24, to discuss the situation in oil markets and to look for ways to cap rising production to help support oil prices.

The most important economic events:

  • USD Wholesale Trade Sales (MoM) (MAY): (GMT 14:00) – Medium – Forecast (N/A) – Previous (-0.4%).

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.

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