MARKET DEVELOPMENT – USD on the Brink of Range Breakout, Euro & GBP suffer
USD: Given the drop in FX volatility, the USD has continued to benefit, which in turn is now eying the top end of its multi-month range. Consequently, the push higher in the greenback saw Euro test support at the 1.12 handle, while GBP made a firm break below the 1.30.
Crude Oil: Oil prices remain firm as market participants continue to digest yesterday’s announcement by the US to bring an end to Iranian oil waivers. However, gains have been somewhat modest throughout today’s session with Saudi Arabia talking up the possibility of boosting oil production in order to keep the oil market stable and thus keeping a lid on oil price spikes.
Gold: With the renewed bid in the greenback, gold prices were once again on the backfoot with the precious metal testing support at $1267. The outlook remains bearish in the short run with a break below $1262 opening up a move towards $1250.
Source: Thomson Reuters, DailyFX
DailyFX Economic Calendar: – North American Releases
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--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
