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EURUSD - Current Price $1.05928 EURUSD saw an early dip to $1.0570 lows, but there has been short-covering since with the pair currently trading back to around unchanged in a relatively small range. Despite some decent data out of the Eurozone, any major recovery attempts look fragile, with the single currency continuing to be dogged by geopolitical concerns. Looking ahead, University of Michigan sentiment and US New Home Sales are just about all we have to look forward to on the sched…

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EURUSD - Current Price $1.0509 (-$0.0028) EURUSD is on the back foot this morning, tumbling from the mid-$1.0500s to its lowest level since 11th January due to the political uncertainty surrounding the EU as anti-euro candidates like Marine Le Pen are making strong inroads. The single currency will continue to fall if German IFO comes in weaker along with cooler pan-Euorzone CPI. In terms of technicals, we target support at the 11th January low at $1.0454 followed by the January 4th lo…

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EURUSD - Current Price $1.07316 The USD continues to trade on the defensive this session after President Trump's inauguration speech raised concerns about potential protectionist trade policies. Eur/Usd which slid to an early low near $1.0680 has bounced back to clinch a daily high of $1.0755 ahead of pan-Eurozone consumer confidence and speeches from ECB President Draghi and Chief Economist Praet. From a technical view, we look for resistance around the $1.08 round figure mark fol…

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Gold jumped to a 7-week high during Asian trading hours this morning as the USD continued its recent decline, itself hitting an 8-month low following slower-than-expected Q1 US GDP growth. Spot gold is currently trading at 1277.27, peaking at a 7-week high of over 1280 per ounce, up over $10 from Thursday’s close. Trading has ranged between $1,265.10 & 1,280.90 so far today. With the dollar testing recent lows again, gold prices are trying higher as investors are lookin…

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This morning we’ve seen the price of Gold reach its lowest level since 2010, momentarily trading as low as 1063.73 / oz as a strong USD holds the value down. This level is the culmination of a drastic month for the precious metal as we’ve seen it nose dive over $100 since the peak of 1191.30 on 15th October. Bullion prices have actually fallen 15 out of 16 sessions as investors are bracing themselves for the first US interest rate hike in nearly a decade. Futures data…

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The Federal left short-term interest rates unchanged ending weeks of debate whether it was the right time to end an era of near-zero rates in acknowledgment of the ever improving US economy and job market. A majority of Fed officials still believe the central bank will raise rates before the end of 2015, but the central bank showed a little less conviction with the number of officials in favour slipping to 13 from 15 back in June. Janet Yellen noted in a press conference after th…

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The PBoC’s overnight move to weaken its national currency, the RMB (Chinese Yuan), shows a significant shift in policy. They confirm they are to play a greater role going forward in the management of the exchange rate, sending ripples through the foreign exchange market. The move certainly comes at an opportune time for them following a series of weak macro trade data out of the country recently; exports have tumbled 8.3% in July from a year earlier and there has been a severe sl…

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On Tuesday indices in Europe and the US were weak after the long weekend, with the USD bid across the board, commodities were softer. During Wednesday morning’s session, the US dollar has pulled back from Tuesdays highs against the majors; EURUSD: 1.0920 GBPUSD: 1.5422 USDJPY: 123.00 The strong data from the US on Tuesday reminded traders that that the “data dependent rate hike” from the Fed, might not be as far off as had been expected. Openin…

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Traders in the UK and US returned to their desks on Tuesday, following a three day weekend, due to public holidays on Monday. The US Dollar has surged from the levels of last week, with EURUSD trading to a 1.08 handle, and GBPUSD to 1.53, with USDJPY trading over 123 for the first time since the summer of 2007. Strong US data, is fuelling the long US dollar, with commodities on the back foot: WTI Oil: $59.06/barrel Spot Gold: $1189/oz…

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The US Department of Labor will release their monthly employment report, Non-Farm Payrolls at 13:30pm (London). The pivotal data is usually released on the first on the first Friday of each month, and is a good barometer of the health of the US economy. The figures vary widely, causing significant volatility at the time of release as traders react to the figures. The market consensus is for the Fed is to begin tightening in June with economy growing Yellen will begin exiting the ultra-…

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Over the last few decades Chinese growth figures have been the envy of central banks around the globe. The back-to-back years of double digit GDP have now slowed to “only” around 7%. Recent macro data from China has disappointed markets, with the indicators pointing to a further slowdown in economic growth. The expansion has been coupled with inflation, however data released in January reported a 5 year low. On the 4 February the PBOC attempted to stave off a further slowdo…

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The price of Oil has collapsed since the start of the year, with concerns of the global recovery being derailed. Oil producing nations, who rely on the black gold for revenue, are in risk of having to cut expenditure following the commodity rollercoaster. US Oil (WTI Crude) has traded below $60 for the first time in 5 years on Thursday and there is a concern that there could be further to fall. Countries that are expected to suffer are net exporters of Oil, and rely primarily on govern…

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To understand the Japanese Yen’s movement it is important to understand the term that is readily banded around as the reason for the currency’s depreciation, Abenomics. (See footnote explaining Abenomics) Further Stimulus On the 31st of January the Bank of Japan voted 5-4 surprising markets to increase its monetary base by 60 to 70 trillion Yen. The unprecedented move pushed the Nikkei to a 7 year high as USDJPY quickly depreciated. Latest Abe Announcements:…

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The Bureau of Labor Statistics will release the monthly US Jobs data (non-farm payrolls) for October at 13:30pm. The figure is closely watched by traders as t the strength of the US recovery and future Fed policy. The consensus expectation is an increase of 235,000 jobs and an unemployment rate of 5.9%, slightly below September’s +248,000. On Wednesday the ADP Private Payrolls report for September printed an increase of 230,000 jobs. Seasonal As the unemployment rate…

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It is the 1st August and the first Friday of the month, and today the US Bureau of Labor releases their employment figures, Non-Farm Payrolls at 13:30 (London,UK). In the last few trading sessions, the USD has been bid against the majors, following Federal Reserve’s announcement of further tapering and policy statement that interest rates are not too far off. This has seen US indices trade lower, and Gold weaken by $20, now trading $1282/oz. Recent data: Initial jobless cla…

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