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The FxPro Analyst Team

Yellen & Draghi speak: Markets listen

Central Banks are the key drivers of the markets this week as traders focused on comments made from two major central bankers; ECB Chief Draghi and Fed Chair Yellen. Draghi commented that “he sees room for paring back stimulus” this optimistic comment weighed on government bonds whereas Yellen suggested “that the US economy can withstand higher interest rates and that asset valuations were rich”. The markets are now looking for additional economic strategy indications from various influential ...

The FxPro Analyst Team

Markets look to Central Bankers

Asian Equities traded higher on Tuesday approaching near two-year highs on Tuesday as USD strength helped exporters and traders are expecting Federal Reserve Chair Janet Yellen to make positive comments to support the Fed's projection for one more interest rate rise this year. Yellen is due to take part in a discussion on global economic issues at London’s Royal Academy today. In addition, several of her Fed colleagues are due to speak later in the day. U.S. durable goods data, released ...

The FxPro Analyst Team

Global Economic Optimism Continues

Global equities moved higher on Monday as optimism continued to improve on global economic growth. However, USD remained somewhat subdued in early trading as the outlook for US inflation remains tenuous as restrictive bond yields continue to raise concerns about the Federal Reserve’s strategy to tighten their economic policy. In general, markets think the pace of its tightening will be much slower than policymakers want. The EUR had little impact following the news over the weekend that Italy ...

The FxPro Analyst Team

Markets look ahead to US data next week

Trading in USD was relatively flat on Friday ahead of economic indicators released next week in the US, which will provide further insight into the US economy – specifically inflation. Following last week’s FOMC decision to raise interest rates, the USD Index hit a 1 month high on Tuesday of 98.871. Since then trading has been in a narrow range as the markets await new US data to “analyse”. With US inflation data released next week the markets will be keen to see if the recent slump in crude ...

The FxPro Analyst Team

Bear Territory for Oil?

Oil continued to trade lower on Thursday as traders look ready to test new lows for crude prices with worries persisting over a global glut. Since peaking in late February, crude has dropped approximately 20%, with only brief rallies, completely erasing the gains it made at the end of the year following the initial OPEC-led production cut. OPEC and other major producers agreed to cut output by 1.8 million barrels per day from January for six months which was recently extended for an additional ...

The FxPro Analyst Team

Oil & GBP slide lower

Oil continues to be under “over supply” pressure resulting in prices dipping to 7 month lows. Yesterday Oil suffered a 2% drop as the increased supply from several key producers undermined OPEC producers deal to reinforce a cut in global output. For those traders following technicals the recent fall in Oil equates to a 20% fall from recent highs signaling official “bearish” territory. In early trading WTI was trading around $43.35pb and Brent was trading just below $46pb. GBP dropped on ...

The FxPro Analyst Team

USD Rises as Investor Concerns Abated

Investor concerns, that low US inflation could deter the Federal Reserve from raising interest rates further this year, were somewhat abated last night after New York Fed President William Dudley stated “that the tightening in the labour market should help drive up inflation”. Dudley’s comments reinforced last weeks Fed message and helped to give a boost to USD. In early Asian trading USDJPY rose to 111.783 reaching its strongest level since May 26th which is nearly 2.8% above the 2 month low ...

The FxPro Analyst Team

Brexit Negotiations to be Triggered

The Brexit negotiations between the UK and the EU is set to start today, June 19th. Although Theresa May has stated before “no deal is better than a bad deal”, Chancellor said on Sunday that “no deal would be a very, very bad outcome for Britain”. A Hung Parliament will likely cause both a positive and a negative impact on the Brexit process, as the Tories now have less dominance in the Parliament, the UK will likely be at a weaker position, resulting in a softer Brexit. However, different ...

The FxPro Analyst Team

BOJ Monetary Policy Remains Steady

The Bank of Japan maintained their monetary policy on Friday whilst upgrading their assessment of private consumption and overseas growth; signaling its confidence that an export focused economic recovery was broadening and gaining momentum. Short term interest rates will remain at -0.1% and 10-year Government Bond yields close to zero. Unlike the US Federal Reserve, who have reduced their massive stimulus program, the BOJ is unlikely to adopt the same approach whilst Japanese inflation is ...