Optimistic forecasts on oil prices, nuclear talks with Iran, and upcoming OPEC+ meeting. How to trade oil these days?
Gold leaps on diving greenback
On Thursday, gold managed to grow due to the depreciation of the evergreen buck as well as concerns about talks between the USA and North Korea.
On the Comex exchange gold futures rallied 0.1%, hitting $13,554.8 an ounce. At the same time, the US dollar index, showing the purchasing power of the evergreen buck to the group of six leading currencies, headed south by approximately 0.03% hitting 89.32.
The appreciation of the evergreen buck makes gold less accessible to keepers of other assets.
Geopolitics once again caught the attention of market players after the US President Donald Trump told that his meeting with North Korean leader Kim Jong-no will take place on the condition he’s confident enough of the success of the negotiations.
The economic calendar for Thursday will focus on the report on the number of initial applications for unemployment benefits. The Fed's Beige Book, released yesterday, disclosed that the improvement in the labor market situation hasn’t provoked a significant increase in wages in America.
The index of business activity from the Federal Reserve Bank of Philadelphia is going to be uncovered soon. Market experts foresee a slight dive in this index.
Today, members of the Federal Open Market Committee, Lael Brainard, Federal Reserve Chairman Randal Kvarls and also Cleveland Federer Loretta Mester, head of the Federal Reserve Bank will deliver speeches.
The statements of the Fed officials are going to be thoroughly analyzed after the president of the Federal Reserve Bank of Saint Louis James Ballard warned that the yield curve might be distorted in the next six months, which appears to be a traditional signal of a recession.
Meanwhile, palladium futures tacked on 1.0% being worth $1044.9 an ounce.
Nickel futures edged up 6.4% coming up with a reading of $16,262.50.
Copper futures ascended 0.9% reaching $3.187 a pound.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!