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Market Review - Fundamental Perspective - 19 April 2018

PCM Enterprise - Development Firms

Global equities continued their rally throughout yesterday’s session, led by resource stocks which gained on rising oil prices. Crude oil jumped to new 3-year highs on reports that Saudi Arabia would be willing to let crude rise to $80 or $100 a barrel (Reuters). USDJPY continued its recent rally yesterday after US President Trump and Japan’s Prime Minister Abe agreed on starting talks on free trade relationships.

GBPUSD dropped by c.1% yesterday morning after UK March inflation data came in lower than expected at 2.5%, though sterling retraced some of its losses during the afternoon. The fall in inflation reflects a mixture of timing and weather effects, as well as the recent weakness in activity data. Nevertheless, Barclays Research does “not expect this to deter the BoE from hiking in May”.

Our traders currently see GBPUSD support at 1.4145/ 1.3980 and resistance around 1.4350/75 ahead of 1.4377. In EURGBP, support lies in the 0.8690/ 0.8620 area while resistance comes in at 0.8735/40 ahead of 0.8810.

In the euro zone, inflation was also weaker than forecasted, which is mostly attributable to volatile components and Barclays Research leaves its outlook unchanged. The Bank of Canada left interest rates unchanged as expected. BoC Governor Poloz stroke an upbeat tone but reiterated the need for caution on future rate adjustments. USDCAD traded c.0.8% higher after the announcement.

PCM Enterprise - Development Firms Review

Source: https://myforexforums.com/showthread.php/1184-Market-Review-%E2%80%93-Fundamental-Perspective?p=33969&viewfull=1#post33969
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