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The FxPro Analyst Team

FxPro Forex Analysis: WTI Crude Weaker After Inventories, USD Index Retesting Significant Lows, GBP Firm Ahead of Retail Sales Data

The Economic calendar for today is very light, with main events in focus for the European trading session concentrating around German PPI and UK Retail Sales data. Asian equity markets were positive, pointing to a sixth week of gains. The U.S. Dollar Index declined overnight, trading very close to the psychologically important 90.00 level, which represents a four-monthly low. Precious metals rebounded, with Gold trading close to $1330 and Silver close to $17.00. WTI Crude dipped lower after ...

The FxPro Analyst Team

FxPro Forex Analysis: Chinese GDP Beats Expectations, Asian Equity Markets Pared Gains, European Markets Futures Point to Positive Open

This morning, ahead of the European markets open at 07.00am GMT, we saw the release of a range of data from China. Chinese Retail Sales came in at 9.4% v an expected 10.1%, from a previous 10.2%. Industrial Production came in at 6.2% v an expected 6.0%, from a previous 6.1%, and probably the most important, YoY GDP came in unchanged at 6.8% v an expected 6.7%. The Gross Domestic Product (GDP) data is released by the National Bureau of Statistics of China and studies the gross value of all ...

The FxPro Analyst Team

FxPro Forex Analysis: Bank of Canada Rate Hike Expected Today

The BOC is expected to deliver an Interest rate hike of 25bps today as it seeks to catch up with an economy that is flying high. BOC’s Governor Poloz will deliver his decision and Press Conference, where he will outline the factors involved in making the decision. Chief among them will be the broad underlying wage growth and strong price dynamics of the economy, coupled with excesses in the financial system. The Governor down-played NAFTA concerns in his December speech but as the Trade ...

The FxPro Analyst Team

FxPro Forex Analysis: Japanese Yen Reaches Key Psychological Area Against the Dollar

USDJPY found support ahead of 110.000 yesterday, with a low of 110.330. The area is a key psychological support for the pair finding buyers to reverse the recent bout of selling. A drop below the 110.000 level has prompted intervention from authorities in the past, as the countries’ Equities Indices come under pressure from the exchange rate. UK MPC Member Teneyro gave a speech entitled ‘The Fall in Productivity Growth: Causes and Implications’ at the Queen Mary University of London on Monday ...

The FxPro Analyst Team

FxPro Forex Analysis: FxPro Daily Outlook – January 15, 2018

Today is Martin Luther King’s Birthday, which is a Bank Holiday in the United States. As a result, the Economic Calendar is relatively light today. US Federal Reserve Bank of Boston President Rosengren spoke from San Diego. He made comments about Fed policy and how the policy framework should be updated. He said that further drops in the Jobless rate risk undermining recovery. He also spoke about inflation and said that the Fed could set medium-term goals and inflation ranges, and sited the ...

The FxPro Analyst Team

FxPro Forex Analysis: Fed’s Dudley ‘’Warns of Overheating Risks’’

US FED’s William Dudley spoke on Thursday at the Securities Industry and Financial Markets Association in New York. “Over the longer term I am considerably more cautious about the economic outlook,” said Dudley, “Keeping the economy on a sustainable path may become more challenging,” due to the risk of ‘’overheating’’. He made the point that there is a strong case to keep gradually raising rates and that the forecast for 3 rate hikes this year is a reasonable starting point. He said it could ...

The FxPro Analyst Team

FxPro Forex Analysis: Markets Move on China News

During yesterday’s trading session headlines broke that China would reduce or halt its purchase of US Treasuries. This set off moves in Currencies, Commodities, Bonds and Stock. Gold reached a high of 1327.5, the US 10-Year got to a high of 2.59%, SPX 500 fell to 2736.50, while USDJPY fell to 111.285. GBPUSD jumped up to 1.35617, EURUSD rose to 1.20176, while even pairs that would seem to be unaffected by such a move, like EURGBP, rose to 0.88720. Overnight a Chinese government source ...

The FxPro Analyst Team

FxPro Forex Analysis: Japanese Yen Continues to Extend Gains

After yesterday’s surprise move by the Bank of Japan to reduce bond purchases, the Yen has continued its move against other currencies. GBPJPY, for example, is down -0.65%, trading at 151.556, adding to yesterday’s move. Stops are being triggered in an unwind of the recent trend. Even the Japanese stock market is under pressure, with the Japan 225 down -0.36%, trading around 23777.00 for a second consecutive down day. Chinese Consumer Price Index (YoY) (Dec) came in at 1.8% v 1.9% expected ...

The FxPro Analyst Team

FxPro Forex Analysis: BOJ Tapers Bond Purchases

Earlier today the Bank of Japan announced that it would taper its Japanese Government Bond purchases. The ‘taper’ reduces the size of 10 to 25-year debt from ¥200 billion to ¥190 billion and +25 year bonds from ¥90 billion to ¥80 billion. It’s unclear if this will be carried through to the next purchase or if it is a one day only event. Inflation has yet to meet targets and there is no mention of a policy change from the BOJ. Today’s reductions are small but had a big impact on USDJPY which ...