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The FxPro Analyst Team

Forex: Gold Nudges Up Ahead of US Q1 GDP

Spot gold has seen a 1.56% retracement over past two weeks after hitting its highest level of 1295.37 last seen on November 9th 2016. That said, this retracement has held above the support line at 1260 over the past two days. On the 4-hourly chart, the price broke the downtrend line resistance on April 26, indicating bullish momentum has been increasing. The daily Stochastic Oscillator reading is below 30 suggesting a rebound. US Q1 GDP annualized initial reading, Q1 PCE and Q1 core PCE ...

The FxPro Analyst Team

Forex: Will US Q1 GDP Growth Show a Slowdown ?

There are two crucial GDP figures to be released today; UK Q1 GDP initial reading will be released at 09:30 BST, followed by the US Q1 GDP annualized initial reading, Q1 PCE and Q1 core PCE inflation figures (QoQ) at 13:30 BST. This will be the first US GDP figure reported after Trump took office. Presently the US economic condition remain sound - whereas, per the Q4 GDP annualized final reading, we saw a 2.1% growth showing a slowdown compared to a 3.5% growth in Q3. Market expectations for ...

The FxPro Analyst Team

Forex: EUR/USD Trades Below 1.0900 Post the ECB Conference

The outcome of the first-round voting of the French presidential election pushed EUR/USD up, touching the highest level of 1.0950 on April 26 since November 10. EUR/USD has been consolidating since April 24, flirting with the significant psychological level at 1.0900. Today, the European Central Bank (ECB) announce its benchmark rate, marginal lending rate and deposit rate on hold, at 0.0%, 0.25% and -0.4% respectively, and leave the asset purchase programme unchanged of 60 billion Euro per ...

The FxPro Analyst Team

Forex: Trump’s Tax Reform Plan Could Lead To Rising Deficit

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference yesterday; the biggest tax reform plan since 1986. Trump has proposed slashing corporate tax from the current rate of 35% to 15%; from one of the highest in the world to one of the lowest. In terms of personal income tax, the current 7 tax bands (minimum 10%, maximum 39.6%) is to be simplified to 3 bands instead (10%,25%,35%). Trump has also called for a repeal of the 3.8% tax on investment income and death ...

The FxPro Analyst Team

Forex: S & P 500 Bulls Test Major Resistance Ahead of Trump’s Tax Reform

Last week the US President Trump stated on twitter that he will “unveil his major tax reform plan on Wednesday April 26”. The recent reported US Q1 corporate earnings have been outperformed, pushing US stocks up. Tuesday evening, the Dow Jones index hit a 6-week high of 21022, and the S & P 500 index hit a 8-week high of 2392.15. The S & P 500 index has rallied around 1.7% over the past two days. The value of US stock markets has reached the highest level since 2004, some investors worry US ...

The FxPro Analyst Team

Forex: Corporate Earnings Lift US Stocks Ahead of Trump’s Tax Reform Plan

Last week the US President Trump stated on twitter that he will "unveil his major tax reform plan on Wednesday April 26". Trump intends to dramatically cut corporate tax from the current rate of 35% to 15%, and will likely also make tax cut or tax exemption on US corporate overseas earnings. In terms of personal income tax, the current 7 tax bands (minimum 10%, maximum 39.6%) will likely be simplified to 3 bands instead (12%,25%,33%). After the failure of his healthcare bill proposal on March ...

The FxPro Analyst Team

Forex: Global Equities Up, Oil & Yen Weaken

Following the somewhat centrist victory in the first round of the French Presidential Elections global markets appear to be have gained some risk appetite back with Asian equities reaching a near 2 year high on Tuesday. The election also helped lift EUR and put downward pressure on safe-haven instruments. It is therefore likely that European equities will have a strong start this morning. French Polls show Emmanuel Macron defeating anti-euro nationalist Marine Le Pen by as much as 30 ...

The FxPro Analyst Team

Forex: EUR/USD Consolidates Post French Election Surge

EUR/USD has rebounded since April 11, as a result of the weakening of the dollar. The outcome of the first-round voting of the French presidential election was revealed on Sunday night April 23. As consensus, the top two candidates: the independent centrist Macron and the far-right wing Le Pen, won 23.7% and 21.7% of votes respectively. They will the second-round of voting on May 7. As Macron got the first place, surpassing Le Pen with 2% of votes, market concerns over the EU’s collapse after ...

The FxPro Analyst Team

Forex: Market Concerns Eased After Macron’s First Round Victory

The first-round voting of the French presidential election was revealed on Sunday night April 23. The two top candidates: independent centrist Macron and the far-right wing Le Pen, won 23.7% and 21.7% of votes respectively. Fillion and the far-left wing Jean-Luc Mélenchon both got around 19% of votes. The result was in line with expectations, black swans didn’t appear. The terror attack that occurred on April 20 in Paris was likely to give Le Pen one last push just a few days ahead of the ...