Top 5 Things to Know Before You Start Trading
This Tuesday the market has mixed currency movements amidst higher gold prices and upcoming data from the UK.
1 – EUR Off Session Highs
The euro is off session highs which took it back to the $1.1530 mark in Asian trade, a level it last touched briefly in May 2016 and has not held consistently since August 2015. As the European trading day starts, it is up 0.3 per cent at $1.1516.
2 – Oil Production Expected to be Higher
Oil production in several U.S. shale oil regions will grow by 113,000 barrels a day, the Energy Information Administration (EIA) forecast on Monday. July’s report marks the fifth month in a row EIA projected an increase greater than 100,000 barrels a day. The forecast is the latest sign that U.S. drillers continue to pump more, even as benchmark U.S. West Texas Intermediate (WTI) crude futures remain stuck in a range below $50 a barrel.
3 – Gold Prices Higher
Gold prices rose to a two-week high today as the dollar dipped to multi-month lows amid fading prospects of further rate hikes by the US Federal Reserve (Fed) this year and doubts whether President Donald Trump would be able to push through healthcare reforms. Spot gold was up 0.3 per cent to $1,237.66 per ounce at 06:31 GMT, after touching $1,238.76, the highest since July 3, earlier in the session.
4 – AUD at Two Year High
The Australian dollar jumped to two-year highs, with AUD/USD adding 1.47% to trade at 0.7917 after the minutes from the central bank’s last policy meeting showed it turning more upbeat on the economic outlook. Also helping the Aussie dollar is expectations that the Reserve Bank of Australia (RBA) will have to raise interest rates in the near future to keep in line with other countries such as Canada, which lifted interest rates last week.
5 – UK Inflation Data Later in the Day
The UK will release the June inflation data today. According to analysts, the headline inflation may have steadied at 2.9% last month, just shy of the critical 3% level, above which Bank of England (BoE) Governor Mark Carney will be asked to write an open letter to the Chancellor to explain the reasons behind the significant deviation from his 2% mandate target.
