Markets Await Bank of England Meeting

USD

On Thursday, the Greenback settled vs. a basket of the other major currencies, having declined after the U.S. Federal Reserve increased interest rates for a third time this year as widely expected, but kept its interest rate anticipations for the next year unchanged. On the release front, traders are awaiting the U.S. Retail Sales Advance, which is expected to hit 0.3% from 0.2%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down by 0.03% 93.400

EUR

The single currency fell by 0.02% vs. the Greenback, to settle at $1.1824. Data on Thursday showed that Private sector output in Germany expanded at the fastest pace in more than six-years in December. Today, European Central Bank President Mario Draghi will hold a news conference in Frankfurt.

GBP

The Sterling pound rose by 0.51% against the Greenback to settle at $151.76. the GBP rose after parliament passed an amendment to the EU Withdrawal Bill that gives legislators the power to force the government to choose between a “soft Brexit” and an indefinite suspension of Article 50.

JPY

Against the JPY, the USD rose as much as 0.27%, to settle at ¥112.84. No major reports are due from Japan today.

Gold

Gold prices touch one week high, as the Greenback was on the defensive after dropping in the previous session following the U.S. Federal Reserve's decision on interest rates. As widely expected, the Fed increased benchmark rates for the third time this year, but maintained its outlook of three rate increases in 2018 on low inflation concerns. Gold Futures - Feb 18 (GCG8) rose as much as 0.70%, to settle at $1,257.40.

Oil

Oil prices rose, backed by a fourth straight weekly decline in U.S. crude stockpiles, though climbing output capped prices well below the 2015 record levels reached earlier this week. Crude Oil WTI Futures - Jan 18 (CLF8) rose as much at 0.41% at $56.83 and Brent Oil Futures - Jan 18 (LCOF8) was up by 0.70% at $62.90.

The most important economic events:

CHF SNB Sight Deposit Interest Rate (DEC 14): (GMT 08:30) – Important – Forecast (-0.75%) – Previous (-0.75%)
GBP Bank of England Bank Rate (DEC 14): (GMT 12:00) – Important – Forecast (0.50) Previous (0.50%)
GBP BOE Asset Purchase Target (DEC): (GMT 12:00) – Important – Forecast (435b) Previous (435b)
EUR ECB President Draghi holds news conference in Frankfurt: (GMT 13:30) – Important.
USD Retail Sales Advance (MoM) (NOV): (GMT 13:30) – Important – Forecast (0.3%) Previous (0.2%)

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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