Iraq has been the main topic of discussions over the last few days because of the clear risk of a sharp increase in oil prices if the conflict spreads south where 75% of the country’s oil reserves are held. This week however, the focus is shifting to the inflation of several G8 countries and the next FOMC meeting.
The strength of the loonie observed on Thursday and Friday further to this increase in oil prices appears to be running out of steam this morning. The GBP is continuing its ascent resulting from the recent comments made by Bank of England Governor Mark Carney, which were interpreted as an indication that the British economy is on its way to a solid recovery. The euro is getting very close to a significant support level. Breaking this level could result in some very attractive opportunities for our buyers.
In economic news, we are keeping an eye on U.S. Industrial Production and Manufacturing Production figures, which will be released at 9:15 this morning. There were no surprises further to the revision of the eurozone’s inflation data for May. Have a great day! Salim Laaroussi
Range of the day: 1.0840-1.0960
