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The FxPro Analyst Team

Forex: Positive US Data Helps USD Reverse Recent Losses

Positive US data was released on Wednesday showing that the US economy grew faster than was initially expected in Q2. The US Bureau of Economic Analysis released GDP for Q2 showing a 3% annual rate. The release surpassed market expectations of 2.7% growth as GDP grew at its fastest pace in more than 2 years. Relatively robust consumer spending and improved business sentiment are the likely reasons for the improvement and now puts the US economy on a stronger footing as we enter Q3. In ...

The FxPro Analyst Team

Forex: EURUSD Breaks 1.20 For the First Time Since December 2014

EURUSD broke 1.20 for the first time since December 2014 on Tuesday, as further tensions between the US and North Korea brought in USD Bears, and ECB President Draghi’s recent lack of information on the ECB’s monetary policy brought in EUR Bulls. The latest North Korea missile firing had Japan stating that such action posed an “unprecedented, grave and serious threat”. Japan has requested that the United Nations Security Council hold an emergency meeting. Tensions between North Korea and the ...

The FxPro Analyst Team

Forex: North Korea Fires Missile Over Japan

On Tuesday, North Korea fired a missile that flew over Japan and landed in the Pacific Ocean, approximately 1,180 kilometers (735 miles) off the northern region of Hokkaido, in a sharp escalation of tensions on the Korean peninsula. The implications of a missile flying over Japan are likely to be severe with condemnation expected from the UN and the US. With tensions rising again, USD was sold and the market sought safe havens. On Monday, crude oil prices dropped as flooding from Tropical ...

The FxPro Analyst Team

Forex: Harvey To Impact US Economic Growth?

Tropical Storm Harvey caused extensive flooding along the US Gulf coast over the weekend and markets are evaluating the damage caused to US oil refining centers and the impact this will have on crude oil production. The region is home to 25% of US crude oil refining capacity, and some areas are expected to see 12 months’ worth of rainfall in the span of a week. Although the full impact of the storm’s damage is yet to be determined, the markets expect the impact will be felt globally and affect ...

The FxPro Analyst Team

Forex: UK Economy Grows By 0.3% In Q2

On Thursday, the UK Office for National Statistics released Q2 GDP showing that it increased 0.3%, unrevised from the preliminary estimate. The latest pace of growth was slightly better than the 0.2% expansion posted in Q1. However, there was a slowdown in both UK household spending and business investment. Year-on-year, GDP growth came in at 1.7%, in line with market forecasts. Consumer spending growth slowed to 0.1%, its worst since Q4 of 2014. The US Labour Department released Initial ...

The FxPro Analyst Team

Forex: Trump’s Threats Unnerve Markets

Concerns have risen that the US housing market recovery is stalling, as the US Commerce Department data on US new home sales dropped 9.4% last month to the lowest level since December 2016. The drop confounded many market analysts, who were expecting a 0.3% gain. A separate report on Wednesday from the US Mortgage Bankers Association indicated mortgage applications also decreased. A lethargic housing market weighs on US GDP. Markets got more rhetoric from President Trump on Wednesday, with him ...

The FxPro Analyst Team

Forex: Mixed Data from Europe Invites USD Bulls

On Tuesday, Germany's monthly economic sentiment index came in below market expectations. The ZEW Survey for Economic Sentiment cited a "strong decrease in expectations" as the index fell to 10 in August, down from 17.5 in July – causing a selloff in EUR. News was rosier in the UK with the country posting its first July surplus in 15 years and defying expectations of another deficit. The Office for National Statistics reported a modest surplus in July. Whilst the data is positive, the markets ...

The FxPro Analyst Team

Forex: North Korea Warns That the US Risks Starting An “Uncontrollable Phase of Nuclear War”

With the start of US/South Korea War Games tensions have returned between North Korea and the US. North Korea’s official propaganda newspaper accused the US of “reckless behavior”, saying it is “driving the situation into the uncontrollable phase of war”. An editorial said: “The joint exercise is the most explicit expression of hostility against us, and no one can guarantee that the exercise won’t evolve into actual fighting”. The markets are expecting more rhetoric from both Kim Jong-un and ...

The FxPro Analyst Team

Forex: More Trump Dismissals, War Games Begin and All Eyes (and Ears) on Jackson Hole

Markets are weary following the latest “dismissals” within President Trumps Administration. On Friday, Trump fired his controversial policy strategist, Steve Bannon, this was then followed by the resignation of his special advisor on regulation, Carl Icahn. Icahn reportedly left the administration ahead of a critical magazine article detailing his alleged conflicts of interests and questioning whether he had acted illegally. Once again, concerns rise that the markets have little to no faith in ...