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USD/JPY gaps down after Tokyo election results

USD/JPY has suffered a slight setback in the early hours of Monday trade, with the exchange rate reaching a session low of 112.10 from 112.42 NY close last Friday, before an attempt to recover its footing and fill the gap, last at 112.30.
Double-whammy for Yen crosses
The twofold drivers behind the tentative strength in the Japanese Yen in early Asia are, firstly, …
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Global Central Banks Turned Hawkish, Yen Carry Trades to ComeBack

Sterling, Canadian Dollar and Euro surged broadly last week on hawkish comments from central bankers. The turn in BoE Governor Mark Carney was the most drastic as just a week a go, he said it's not the time of rate hike yet. But then, he indciated the BoE MPC will start debating raising interest rate in the coming months. BoC Governor Stephen Poloz repeated his comments that prior rate cuts in 2015 have already done their job. But this time, Poloz hinted that BoC is approaching a new interest ra…
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EUR/JPY in Bullish Breakout Amid Insatiable Appetite for Risk

Underscoring investors' on-going insatiable appetite for risk, the benchmark stock indices in Germany and the UK hit new record highs today. The commodity-heavy FTSE 100 rose on the back of a sharp rally in the price of oil while the DAX was boosted by news German Chancellor Angela Merkel won in a local regional election. As a result of the oil and stock market rally, commodity currencies outperformed while perceived safe haven yen and dollar both fell. The euro continued its recent ascend thank…
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Week Ahead Dollar Looking to Regain Momentum

The US dollar will finish the week ending May 12 higher across the board against major pairs. Despite the dollar rally losing steam as softer economic data was released the U.S. Federal Reserve kept the June rate hike on the table boosting the greenback on a monetary policy divergence basis. The central banks of New Zealand and England issued statements this week and made it clear that there are no rate changes coming soon, unlike the US central bank. The miss in inflation and sales could only h…
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Sterling Slips on Gloomy BoE Minutes

GBP/USD has lost ground in the Thursday session. In North American trade, GBP/USD is trading at 1.2881. On the release front, it's been a very busy day. The Bank of England maintained the benchmark rate at 0.25%, but the minutes of the May policy meeting were pessimistic. There was more bad news as Manufacturing Production declined 0.6%, worse than the forecast of -0.2%. US numbers were strong, as PPI improved to 0.5%, and unemployment claims ticked lower to 236 thousand. Both indicators beat th…
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USD/JPY Extends Breakout on Dollar Comeback, Struggling Safe-Havens

With French election risk in the rear-view mirror and earnings-driven US stocks (S&P 500, Nasdaq) having hit new record highs, a prolonged risk-on environment has further taken hold of major financial markets.
Of course, geopolitical and economic risks certainly remain prevalent, but markets within the past three weeks have seemingly brushed off many of those concerns. As a result, market volatility continues to decrease, pressuring assets perceived as safe-haven instruments, including gold and …
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Pound Steady as Markets Relieved Over Macron Win

GBP/USD has edged lower in the Monday session. In North American trade, GBP/USD is trading at 1.2940. It's a very quiet start to the week, with no major releases out of the UK or the US. On Sunday, Emmanuel Macron easily defeated Marie Le Pen to win the French presidential election.
It was a clean sweep for PMI reports last week, as the Manufacturing, Construction and Services PMIs all beat their estimates. These releases underscore a solid British economy, despite continuing jitters over Britai…
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USDCHF: Bearish, Closes Lower

USDCHF: The pair closed lower the past week leaving risk of more declines on the cards in the new week. On the downside, support lies at the 0.9800 level. A turn below here will open the door for more weakness towards the 0.9750 level and then the 0.9700 level. Its daily RSI is bearish and pointing lower suggesting further weakness. On the upside, resistance resides at the 0.9950 level where a break will clear the way for more strength to occur towards the 1.0000 level. Further out, resistance c…
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French Election 2nd Round: Would a Macron Win Extend the Euro Rally?

The time has come once again for markets to speculate on who will ultimately become the next president of France, as the second round of the French presidential election is set for this Sunday. But this time, unlike the first round of the election two weeks ago, the deep market concerns that anti-euro candidate Marine Le Pen might have a good chance to win have turned into a distinct expression of relief that pro-euro Emmanuel Macron is increasingly likely to pull out a potential landslide victo…
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Dólar australiano e canadense afundam com petróleo bruto e preços de metal

O dólar australiano underperformed no comércio asiático. A moeda caiu ao lado de seu país de origem benchmark ASX 200 índice de ações, apontando para a aversão ao risco como o ímpeto por trás do selloff. Os metais e as empresas de …
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