| Sterling expected to make gains |
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| Written by Gary Howes |
| Wednesday, 01 July 2009 10:20 |
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Forex and Commodities Report: This mornings surge in equities is likely to spell a good run for the sterling. European stocks are up across the board along with US equity futures which if hold into the US session could see a retracement for the risk trades. In such scenarios the US dollar is usually a loser, while the sterling is expected to gain on its risk status. Sterling had hit an eight-month high against the dollar at one stage yesterday but those gains ebbed away by the close. The sterling is also expected to make gains against the Euro according to FX Street, it is currently at 85.60 against the euro coming off a high of 85.75. Commodities: Oil below $70Oil plunged below $70 a barrel after US consumer confidence figures for May came in worse than expected. The Conference Board’s index of consumer sentiment fell to 49.3 in June, down from a revised 54.8 in May. Economists had been expecting a reading above 50. The news raised fears amongst traders that concerns about the economy will lead to lower consumption of oil. US crude oil fell $1.60 to settle at $68.89 a barrel Tuesday. Gold also slumped on the back of the fall in crude prices, while investors rushing to the dollar on economic concerns also weighed on the precious metal's safe-haven appeal. The August delivery lost $13.30, finishing at 927.40 dollars an ounce. 
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