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European markets were under pressure this morning, as investors paused for breath ahead of a Federal Reserve meeting. The pan-European Stoxx 600 edged down by around 0.1% during mid-morning deals, with most sectors in negative territory and major bourses pointing in opposite territories. Europe's food and beverages sector slipped around 0.8% this morning after a Mexican bottler and retailer announced it had sold a stake in the world's second-largest brewer. Fomento…

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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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European equities opened higher after fresh record peaks from their US counterparts, but have pared initial gains, with both the FTSE and the DAX now treading water marginally above parity. As such, core EU debt has pushed ahead, led by German paper, with another record low for the Schatz and the 10-year yield at its lowest since early January. This despite firm IFO numbers, with all components topping expectations while pan-Eurozone CPI matched expectations. An underwhelming German July 204…

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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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European equities initially chased their US and Asian counterparts higher but have pared back some gains. The FTSE is leading its German counterpart, benefiting from the strong performance in the materials sector after China’s strong January trade report overnight. Elsewhere, oil prices have rallied in the wake of the IEA monthly report, in which they raised their global oil demand and highlighted that OPEC made production cuts in January equal to 90% of the agreed volumes. In fixed, c…

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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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EURUSD - Current Price $1.0622 (-$0.0027) EURUSD is nursing modest losses ahead of the European cash equity market open amid broad risk aversion in financial markets. This follows a report in the Sunday Times over the weekend that UK PM Theresa May will signal she is prepared to leave the single market in a speech tomorrow. The pair reached a low of $1.0593 in Asia although swiftly reclaimed the $1.06 handle. Looking ahead, Italian CPI and Euro Zone trade data make up the data slate wh…

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UK Chancellor of the Exchequer, George Osborne made his first statement since the UK’s EU referendum this morning in a bid to stabilise markets. He stressed that the UK government is “ready to deal with the consequences” and that the UK economy is strong. Despite these reassuring words, he also heeded that there will need to be “a period of adjustment” and that “there is going to be an impact on public finances”, although any new budget would b…

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And so it's begun......4 months of constant debate on whether or not the UK should stay or leave the EU. Even though the date has only been set now for less than a week, we have already seen a massive impact on the value of Sterling against all of it's major trading peers. There are very few opinions to suggest that this is not set to continue as the uncertainty builds towards the 23rd June 2016 day of destiny. This morning saw cable duck below the 1.39 handle, curr…

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After a marathon 17 hour session of negotiations, Greece has finally reached a deal with its creditors; here’s what we know so far: *The deal will unlock €82-86bn of funds for Greece - that's enough to keep it going for another three years *There will be no Grexit - European Commission president Jean-Claude Juncker made that much clear *Greece will have to transfer €50bn of assets to a new fund, although it'll be based in Athens, rather than Luxembou…

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The man who shocked us all last week calling the surprise Greek Referendum, the then Greek Finance Minister Yanis Varoufakis' promptly resigned this morning despite the vote coming in as a resounding ‘No’ to accepting their creditors’ reform proposals. He actually initially announced that he would only resign should the Greek public vote ‘Yes’ thus the result and his departure leave analysts and everyone else alike even more ‘in the dark’ a…

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In the first half of April, GBPUSD traded to a new 5 year low (1.4530), with the US dollar bid and GBP weak on election fears. Fast forward a matter of weeks and cable is now trading above 1.5365 and EURUSD has rebounded from its race to parity, to trade over 1.10. The move is primarily a US dollar story, in the UK the general election is in eight days and the uncertainty over the future government remains. In Europe the fears of a Grexit remain, as the remaining funds in Athens are ne…

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German Finance Minister Wolfgang Schaeuble issued a statement late last night in New York criticising Greece for backing out of agreed bailout reforms. He said that ‘nobody expects that there will be a solution’ to Greece’s drama by next Friday’s ECB meeting on 24th April 2015; this fully contradicts with the Greek Finance Minister Yanis Varoufakis’ comments last week when he said he was ‘very confident’ a solution would be reached. Greek offic…

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The March Markit/CIPS UK Manufacturing PMI reading was an 8 month high, as growth of production and new orders accelerated. The seasonally adjusted reading increased from February’s 54.0 to 54.4, matching analysts’ estimates. The report from Markit highlighted that the input costs and selling prices had both, which is to be expected with zero inflation, and oil prices significantly. The 54.4 figure is well above the 50.0, which signifies expansion, carrying on from yesterda…

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The fear of Greece leaving the single currency (Grexit) has been a recurring theme since the collapse of Lehman Brothers. The country has only remained within the Eurozone via multiple bailouts from the IMF, otherwise the country would have defaulted on its commitments and been forced from the currency union. At the latest election, the citizens of Greece voted for the anti-austerity Syriza Party which are playing hard ball with Brussels as the country verges on bankruptcy. The leader…

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