Oil Prices Fall Sharply

British pound declined to its lowest level in more than a two-month’s after Prime Minister Theresa May suggested the government is willing to cut all ties with the European Union. May’s remarks raise investors’ concerns about a hard-Brexit and the economic relations between the European Union and UK after triggering Article 50.

GBP fell sharply yesterday vs. USD and settled at $1.22. Technically, it could decline further during the coming period.

The Greenback fell yesterday, due to lack of economic data. The U.S. dollar index pared its gains and settle at 102 pips.

The Greenback fell nearly 1%, to settle at ¥116. Technically, it could decline to ¥115 as traders are shifting to safe-haven currencies.

Oil prices fell as much as 4% yesterday on fears that record Iraqi crude oil exports and rising U.S. output would challenge OPEC's plans to decline global oversupply.

U.S. crude settled below $52 and it is likely to fluctuate more as traders are looking for positive steps from the oil-producing countries to apply their commitments.

Gold prices rose to $1,282 as investors rushed for safe-haven’s before Trump takes the reins. Technically, the yellow metal could trade in a limited range due to lack of economic data.

Euro pared its losses and traded at $1.06 as German industrial production rose for the second consecutive month in November, the fastest growth in a four and a half year. Technically, the common currency could re-test $1.06 during the day.

The most important economic events:

USD Wholesale Inventories (NOV F): (GMT 17:00) – Medium – Forecast (0.9%) – Previous (0.9%).

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.