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Markets Await ECB Policy Meeting

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USD

On Friday, the Greenback settled below 32-month lows against a basket of major currencies, as the European Central Bank's latest policy statement gave a strong support to the single currency, while the dollar remains negatively affected by weak US economic data.

Moving forward, markets are awaiting the U.S. Consumer Credit report, which could hit $15.000b from $12.397b.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.46% at 91.237, the lowest level since January 2015.

EUR

The single currency hit a 2-1/2-year high vs. USD, as a policy meeting of the ECB gave bulls cause for short-term optimism. Despite the euro zone's best economic run since the global financial crisis, the ECB confirmed its ultra-easy policy stance with rates kept at record low. However, Draghi said the ECB must take into account the weakening of inflation owing to the strong euro.

The single currency rose as much as +0.26% vs. the Greenback to settle at $1.2053.

JPY

The Green back fell as much as 0.69% vs. the JPY, to an 11-month low of ¥107.69, with traders remained cautious amid tensions over North Korea's nuclear program.

GBP

The Sterling pound rose as much as 0.21% vs. the Greenback to a five-week high of $1.3139. Moving forward, traders are awaiting the UK Inflation data for the next 12 months (AUG).

Gold

Gold prices settled above one-year highs, backed by a broadly weaker U.S. dollar and lingering worries over North Korea tensions with the U.S. Markets remained cautious amid speculation that N. Korea may launch an intercontinental ballistic missile on Saturday. Gold Futures - Dec 17 rose as much as .57%, to settle at 1,358.07.

Oil

Earlier today, Oil prices edged higher as U.S. crude production was strongly affected by Hurricane Harvey. Meanwhile, markets remained wary of Hurricane Irma, classified as one of the five strongest Atlantic hurricanes in the last 80 years, as it could knock out a major demand center and cause more fuel shortages.

In terms of news, Crude-oil refinery inputs declined by 3.3 million barrels a day last week, to average 14.5 million barrels a day, while refineries operated at just 79.7% of capacity. Crude Oil WTI Futures fell as much as -0.14%, to settle at $49.02, while Brent Oil rose as much as +0.33%, to settle at $54.67.

The most important economic events:

  • GBP BoE/TNS Inflation Next 12 Mths (AUG): (GMT 08:30) – Important – Forecast (N/A) – Previous (2.8%).
  • CAD Net Change in Employment (AUG): (GMT 12:30) – Important – Forecast (15.0k) – Previous (10.9k).
  • CAD Unemployment Rate (AUG): (GMT 12:30) – Important – Forecast (6.3%) – Previous (6.3%).
  • USD Baker Hughes U.S. Rig Count (SEP 08): (GMT 17:00) – Medium – Forecast (N/A) – Previous (943).

We wish you all the best in your trading activities. For any further assistance, please do not hesitate to contact us at clientservices@ICMCapital.co.uk

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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