Forex

GBP/USD WEEKLY OVERVIEW

Pound surged up on Tuesday due to strong unexpected UK manufacturing data erupted as a result Pound rose against Dollar to a 3 year peak in April. It traded up 0.3% at $ 1.2922, less than a cent off a seven month peak versus the Dollar. On the other hand Pound steadied below seven month high verses Dollar on Wednesday, due to positive increase in construction PMI showing growth of Britain’s construction industry. Pound was 0.2% lower at $ 1.2910 and dipped about 40 ticks after Prime Minister Theresa May speech on Wednesday over Brexit issue. On Thursday Pound rose 0.4 % above at 1.2919 per Dollar after another stronger data relating to Britain services sector a triggering spark for Bank of England for immediate hike in interest rates.

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EUR/USD WEEKLY OVERVIEW

Overall US economic data kept the Dollar relatively stable against the Euro. The Euro on Tuesday was last up 0.1 % against the Dollar at $ 1.0901 shortly after economic data. On Thursday Euro hits its highest level in six months against the US Dollar. The Euro surged to $ 1.0953 its highest since Nov 10, 2016, when in French Presidential election centrist Emmanuel Macron has successfully strengthened his position and symbolically removed uncertainty for the Euro.

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USD/JPY WEEKLY OVERVIEW

The US Dollar jumped and hit a six week high against YEN on Tuesday whereas Dollar hits 112.30 Yen its highest since March. Despite weak US economic data the Dollar hit high on Monday against the Yen. The Dollar was 0.3 % against the Yen at 112.13 Yen. The Dollar index was last up 0.1 % at 99.171 Yen. On Thursday US Dollar rose and hit more than six week highs against the Yen. The Dollar was little changed against Yen on Thursday after touching a seven week high of 113.04 Yen earlier in US trading session. The Dollar index against six major currencies was last down 0.2 % at 98.979 Yen. On the expectations from the traders that Federal Reserve will increase interest rates soon, the Dollar retained stronger against Yen.

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GOLD WEEKLY OVERVIEW

On Tuesday Gold prices fell to a new three week lows. In fact rising share prices increase the opportunity cost of holding non yielding bullion while stronger Dollar makes Gold more expensive for holder of other currencies. Spot Gold was down 0.2 % at Dollar 1254.01 an ounce. US Gold futures were $ 1255.60 an ounce. Gold was likely to move towards its 400 days moving average of $ 1224. Higher interest rates would cause US Bond yield to rise, making non yielding Gold less attractive. On Thursday Gold prices fell to six week lows as Federal Reserve kept interest rates unchanged and winning indication of Macron‘s success in French Presidential Election. Spot Gold was down at $ 1225.56 an ounce. US Gold futures dived to 1.8 % to $ 1226.

On Thursday spot Gold was down 0.8 % at $ 1246.76 an ounce whereas US Gold futures settled down 0.7 % at $ 1248.50.

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OIL WEEKLY OVERVIEW

On Tuesday Brent Crude oil prices fell to its lowest level in over five months. Brent futures fell $ 1.06 to sell at $ 50.46 a barrel. In fact market was already down with the rising production by Libya & US Oil fields. To meet this alarming situation OPEC Countries & Russia which agreed to cut output of Oil by 1.8 million barrel per day for six months to frame deduction in output plan to meet on May 25. On Thursday Oil prices dipped up to 5 % breaking below at $ 50 a barrel to the lowest since last November 2016. US Crude fell $ 2.33 to $ 45.49 per barrel whereas Brent was down 4.6 % at $ 48.43.

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[box type=”note” align=”” class=”” width=””]DISCLAIMER: This report has been prepared by ISMAR financial. The information and opinions contained herein have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified and no guaranty, representation or warranty, express or implied is made as to its accuracy, completeness or correctness. This document is only for Reading information.[/box]