Investors continue to search for solid reasons for some of the current forex market moves. Sterling and EUR has been easy as investors cite yesterday’s somewhat surprising PMI headline prints, however, the dollars move is more of a mystery. Its change of late cannot be explained by rates or even the reversal of safe-haven trades […]

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Gold prices remain steady, as the spot price for the metal stands at $1311.11 in the European session on Wednesday. On the release front, it’s another quiet day, with no major economic events out of the US. All eyes will be on Federal Reserve head Janet Yellen, who testifies before Congress on Wednesday and Thursday. Gold prices […]

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GBP/USD retreated further to start the week, but found support just above 1.6850 during the 5/5 US session.
Resistance:
The 1H chart shows a market that has been bullish, but found resistance at 1.6913 last week. This is the 2014-high.
This week, the first global session high is at 1.6882. This will be a key resistance in the near-term.
Above the 2014-high, the 1.70-1.7040 area contains key multi-year highs…

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After facing a week of key fundamental risks USD-direction is unclear. Friday’s price action had 2-parts: 1) reaction to NFP (USD-positive), and 2) reaction to (USD-negative). 1) The NFP and jobs data was relatively positive, though blemished by very poor labor force participation rate data. 2) US Factory Orders for March came in at 1.1%. Forecasts called for a 1.5% reading for March.. The previous reading was revised down from 1.6% to 1.5%. This is still a positive gain, but fails to show any improving trend in this manufacturing data.

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US NFP for April came in at 288K (highest since January 2012). This beat the median forecast of about 216K. The March reading was revised up from 192K to 203K. US Unemployment rate fell to 6.3% (lowest since September 2008) from the March reading of 6.7%. Labor force participation declined from 63.2% to 62.8%, which is now the lowest since 1978. Unless this trend reverses, any improvements in the jobs market will be taken with a gain of salt…

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US Event risks: Traders have been weathering some key data this week especially from the US. The latest was the US ISM Manufacturing PMI for April, which beat forecast so traders have some fuel for USD-strength, but it is not likely a big mover outside of the intra-session time-frame because of tomorrow’s key US jobs data. Consolidation w/bullish bias: In the 4H EUR/USD chart, you can see the pair widening a consolidation range to 1.3767-1.3880.

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Gold prices continue to lose ground in Thursday trading, with the precious metal trading at $1280 late in the European session. On Wednesday, the Federal Reserve implemented another taper of QE and stated that it expects interest rates to remain at low levels. Over in the US, it’s a busy day, highlighted by two key releases – ISM Manufacturing PMI […]

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