Bullet Report | USD at 2 month highs, GOLD collapses
Yesterday’s session was characterized by a few strong moves. Firstly GBP’s rise to above 1.47 levels came as a statement that Brexit isn’t very likely to happen. Secondly OIL’s rise to $50 signals a bottom in energy markets and peoples start talking about $100 a barrel again. Upcoming events include US Jobless claims and Pending home sales. FOMC members are also scheduled to speak. The dollar was generally supported by U.S. rate hike expectations, while the euro stood at 1.1151, having hit a 10-week low of 1.1129 overnight.
Currencies: USDJPY came under severe pressure, dropping 100 points from 110.40 to 109.40 on falling Stock markets. GBPUSD continues to climb in a decisive fashion reaching highs of 1.4725. Focus now turns to 1.4769 resistance. S&P said that “a UK departure from the EU could put sterling’s reserve status at risk by deterring foreign direct investment and other capital inflows.” Meanwhile, the nation’s AAA credit rating could even be threatened. USDCAD headed lower 0.77% to 1.3043 after the Canadian Central Bank and the US oil inventory data were released.
Oil and GOLD: Crude oil prices reached $50 a barrel for the first time in 7 months after the US government reported a larger than expected drop in crude oil inventories. On the other hand, GOLD fell to a seven week low of 1217.90 after prospects of higher US interest rates undermined its attraction. The yellow metal, did manage to bounce though to $1231 overnight in Asia.
Stocks: Overnight, US equities rose sharply, completing a very strong 2 day last time this happened was late March, helped by rising oil prices. DJ rose 0.70%, same as SP500. Meanwhile. Shares in Asia and this morning opened mixed. The market will await for US data this afternoon to set the direction.
The post Bullet Report | USD at 2 month highs, GOLD collapses appeared first on Forex.Info.
Source:: Bullet Report | USD at 2 month highs, GOLD collapses