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The FxPro Analyst Team

Forex: A Brief Look at Gold

Gold has made significant gains throughout 2017 along with several retracements. The rally that started in July has encountered a significant correction in September. This recent correction comes after the market began to show less concern over North Korean/U.S. tensions, with investors "abandoning" the safe-haven as risk-on sentiment returned. The Fed’s hawkish position has also helped put more pressure on Gold with the break of $1,300. Gold has now settled back towards the 50-day moving ...

The FxPro Analyst Team

Forex: War of Words Escalates

It did not take long for North Korea to react to President Trump’s recent address to the United Nations General Assembly. Kim Jong-un had responded with a personal statement where he said he was considering retaliating at the “highest level” following Trump’s warning that the US would “totally destroy North Korea” if Washington was forced to defend itself or its allies. This comment was subsequently followed up by comments from North Korea’s Foreign Minister, Ri Yong-ho, who said “Pyongyang ...

Alexander Kuptsikevich

Forex: Not so rosy long-term consequences for USD from the Fed policy

The Fed announced the beginning of a reduction in their massive holding of bonds and mortgage-backed securities starting in October, citing the impact of the recent hurricanes on the economy as temporary and not detrimental to overall economic growth. The scale of reductions will gradually increase, starting from 10 billion USD a month and reaching 50 billion USD within a year. Under existing conditions, the Fed’s balance sheet will decrease by $300 billion to $4.2 trillion. If the program ...

The FxPro Analyst Team

Forex: Fed Holds Rates for Now But…

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that one more hike is possible before year-end. The recent drop in inflation appears to not have unsettled the policymakers, with Fed Chair Yellen commenting “What we need to figure out is whether the factors that have lowered inflation are likely to prove persistent” if they do “it would require an alteration of monetary policy”. In justification of the ...

Alexander Kuptsikevich

Forex: The Fed caused a storm in the markets and explosive growth of USD

The Fed promises to start shrinking their balance from October and has kept the rate unchanged. However, committee's forecasts caused a powerful wave of dollar growth immediately after the publication. The committee is set to hold a third raise this year and expects to face three more rises the next year. In addition, the forecasts for GDP growth were revised up for this year from 2.2% to 2.4%. This is an unexpected turn when many market participants expected to see a downward revision. A ...

FxProUpdates

FxPro Trading Conditions During the 2017 German Federal Election

The 2017 German Federal Election will be held on Sunday, September 24, 2017, and is expected to cause significant volatility in the financial markets, with wider spreads expected across several instruments. We would like to inform our traders that the margin requirements of the below instruments on all FxPro platforms will change as follows: Instrument Margin Required All European Spot Indices 2% This change will come into effect on Friday, September 22, 2017, at 15:00 (GMT+3) and will affect ...

The FxPro Analyst Team

Forex: All Eyes on Fed

The markets are little changed overnight as they await the outcome of the 2-day Federal Reserve meeting that ends today. Many will be focusing on the Fed’s description of inflation in their policy statement as the US is confronted with tepid inflation well below the Fed’s target of 2%. A change in economic policy will signal the likelihood of rate hikes before the end of the year. Many are expecting a rate hike in December, with the CME FedWatch tool showing the likelihood of a December hike ...

Alexander Kuptsikevich

New US data did not add positive to markets before FOMC

Published data on construction activity in the US in August slightly exceeded expectations. The number of building permits reached an annualized rate of 1.3M (an increase of 5.7% mom) above expected 1.22M. Housing starts fell by 0.8% during last month to 1.18M from 1.19M, slightly higher than the expected 1.175. Such statistics somewhat reduced fears of negative impact on the industry the beginning of the hurricane season, but did not deprive fears that the construction industry would pull down ...

The FxPro Analyst Team

Forex: Interest Rates in Focus

On Monday, at a speech at the International Monetary Fund in Washington DC, Bank of England Governor Mark Carney stated that any increases in UK interest rates in the future will be both “gradual” and “limited”. He commented that "some withdrawal of monetary stimulus is likely to be appropriate over the coming months" to help return inflation to its 2% target. Recent comments from members of the Bank of England’s Monetary Policy committee appear to suggest the possibility of a hike in rates ...