Daily Market News By FXNET

Trading Discussion News and Economy
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Asian Session – Yen weakens after Bank of Japan policy announcement

The yen tumbled against major counterparts after the announcement from the Bank of Japan that it left its monetary policy and economic assessment unchanged. The Bank also extended and doubled two loan programs.

USDJPY and the JPY crosses rallied with the Nikkei following the BOJ policy announcement. From just below 102.00, USDJPY surged up to 102.73. EURJPY rallied from 139.50 to 140.50, GBPJPY from 170.17 to 171.35.

EURUSD opened in Asia at 1.3705, Trading was extremely quiet over the past 24 hours with the pair hovering around 1.3700. During the Asian session the pair traded a 1.3695-1.3717 range.

Looking ahead, the euro will be in focus as the German ZEW investor sentiment data will be released in the European session today.

GBPUSD edged higher from 1.6710 to 1.6736 in Asia following the downside retracement to 1.6694 overnight. EURGBP consolidated between 0.8193-97 in Asia after the bounce last night.

Key risk for the sterling today will be UK inflation data.

AUDUSD opened in Asia and held between 0.9030-42 ahead of the Reserve Bank of Australia minutes then rose to a fresh one-month peak of $0.9081. The minutes had nothing new to say but alt of the move in AUD was based on positioning.

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Nifty Future closed in the red in the last trading session. We advise selling around 6220-6230 levels with strict stop loss of 6250 for the targets of 6180-6150 levels.

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Asian Session – Dollar struggles after weak US consumer confidence data

Weak US data dampened sentiment keeping the dollar heavy against the yen. US Consumer confidence in February fell to 78.1 versus 80 forecast and 79.4 previous. Meanwhile there were comments from the Fed policy maker Tarullo who said that monetary is possible tool to deal with broad sustained systemic risk and that it is possible that interest rates will remain historically low for some time after Fed starts to raise them.

USDJPY opened the Asian session at 102.24 after trading with a heavy tone through the US session due to weak US consumer confidence and a drop in the 10-yr Treasury yield to 2.70%. The pair eased to 102.13 in early Asia.

The Australian dollar was in focus today as there was domestic data on the construction sector. Fourth-quarter total construction fell 1.0% on the quarter while engineering construction was down 0.5%. Also weighing on the aussie lately was the weaker Chinese yuan.

AUDUSD opened the Asian session at $0.9018 and traded a moderate 0.8969-0.9021 range.

EURUSD barely moved yet again in Asia and could only manage a $1.3739/1.3748 range for the entire morning session.

GBPUSD traded a 1.6669-85 range in Asia. Yesterday the pound rose above $1.6720 after comments by the BOE’s McCafferty that the UK could raise interest rates in Q2 2015.

Revised GDP for the UK will be released in the European session today and US new home sales in the US session.

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Asian Session – Yen lifted by upbeat Japanese data

The yen performed well in today’s Asian session after a series of upbeat data released from Japan. Most figures came in on or better than expectations, which reduced the expectations in the market that the Bank of Japan might be taking action for further policy easing.

USDJPY opened the Asian session at 102.12 and traded to 102.20 before falling after the Japan data to 101.76. Yesterday the dollar got a bit of a boost after Fed Chair Yellen’s testimony.

EURUSD opened the Asian session at 1.3709 after a recovery in EURJPY and a broadly weaker USDJPY. EURUSD could only manage a 1.3703/15 range.

The main event during the European session will be Euro zone inflation data and the outcome will likely shape the European Central Bank expectations ahead of next week’s meeting.

GBPUSD traded a 1.6677-95 range as did USDCHF which traded a 0.8877-08889 range during the Asia n session.

AUDUSD opened today at 0.8965 and traded a moderate 0.8944-90 range in Asia with dips to 0.8955 in early trades but it wasn’t long before the 0.8990 level was tested. China data this weekend will be a key risk to the aussie.

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Asian Session – Aussie gains after data shows Australian economy picks up pace

Risk trades were back after the Ukraine crisis de-escalated and this was particularly evident after the S&P 500 rallied 1.5% to a record high on Tuesday.

During Wednesday’s Asian session, the main data releases were from Australian, with fourth quarter GDP numbers coming in stronger-than-forecast.

In other news, China provided its strongest signal yet that it will shift toward balanced and clean economic growth, promising to reduce the pace of investment to the lowest in a decade and wage a “war on pollution”.

Most major currencies traded a range during today’s Asian session, consolidating moves from the previous day. The unwinding safe haven trades led to a weaker yen and Swiss franc.

USDJPY opened the Asian session at 102.21 after the yen was sold across the board due to outflows from safe have currencies as the Ukraine crisis eased. The pair traded a 102.11/29 range throughout the Asian session.

EURJPY did little and traded a 140.25/57 range.

EURUSD opened the Asian session at 1.3742 but barely moved during the Asian session , edging down about 15 pips to 1.3727. Focus is on Euro zone services PMI data later today. The main key risk for the euro will be the European Central Bank meeting on Thursday. There are mixed views on whether the ECB will take action and cut rates.

GBPUSD traded sideways in Asia between 1.6656-73. UK BRC shop prices inflation data released early today had little impact. The UK services PMI data due later today will be more important while Thursday’s Bank of England policy meeting will also be a key risk for the pound.

USDCHF traded a 0.8868-08877 range, remaining calm after fears of the Ukraine crisis subsided and there was less demand for the safe haven Swissie.

AUDUSD opened on Wednesday at 0.8952 and the pair spiked up to 0.8995 after the better-than-expected Q4 GDP numbers. The pair then fell back down to 0.8935.

Looking ahead, Eurozone services PMI data will be released in the European session today.

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Asian Session – Australian dollar rallies after strong retail sales and trade data

The Australian dollar was the best performer today after Australian retail sales beat expectations by more than double the forecast, while the nation’s trade balance posted a strong surplus. The upbeat data lessened the possibility of a rate cut by the Reserve Bank of Australia and helped sentiment for the AUD.

Australian retail sales jumped by 1.2% m/m versus a consensus of 0.5% while the trade surplus widened to A$1.433 billion versus a previous A$591 million and above the A$270 million forecasted.

AUDUSD rallied to a high above 0.9030 while AUSDJPY rose to a high above 92.60 yen.
In other news overnight there was soft US data. The private payrolls processor ADP showed a tepid increase of 139,000 jobs in February, while jobs growth in January was revised down sharply to 127,000 from 175,000. The ISM non-manufacturing PMI fell to a 4-year low last month.

However the dollar remained buoyant as Fed policy maker Williams said yesterday that he expects the first rate hike to be in mid 2015. This gave a boost to the dollar.

USDJPY rose to a high above 102.75 in Asia today, up from the session open of 102.30 and up 1.2% since Monday.

EURUSD traded at $1.3728, little-changed in Asia but off 2-month high of $1.38255 hit on Friday. A key risk for the euro will be today’s European Central Bank meeting. Interest rates are expected to remain the same at 0.25% but many expect the central bank to end its SMP sterilization program, which means an end to bond buying that was draining liquidity. By ending this program, the increase in liquidity in the financial system of the Euro zone will weaken the euro.

GBPUSD was flat trading a 20-pip range above $1.6706. The Bank of England policy announcement will be in focus today.It is expected to be a non-event as the rate is predicted to remain at 0.50%.

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Asian Session – Yen gains on safe haven demand after dismal China trade data

Risk aversion took hold on Monday after a shockingly weak Chinese trade balance report sent a shiver through the markets on the weekend. The world’s second largest economy posted a $23 billion monthly deficit in February compared to a $14 billion surplus expected. This comes after a nearly $32 billion surplus in January.

Meanwhile other disappointing news hurt market sentiment as well after Japan’s current account deficit hit a record 1.5tn yen in January.

Due to increased safe haven demand, the yen benefited during Monday’s Asian session.

USDJPY opened on Monday with a gap lower on risk aversion following worse than expected China trade data. The pair dipped from 103.11 to 102.96. On Friday the dollar surged to a high of 103.75 on the back of stronger-than-forecast US jobs numbers.

EURUSD is proving to be resilient despite the growing tensions in the Ukraine crisis. The pair moved off post-NFP lows of 1.3851 hit on Friday and opened the Asian session on Monday at 1.3870 to reach a session high of1.3891.

GBPUSD traded a 1.6720-45 range during the Asian session, down from Friday’s high of 1.6784.

USDCHF traded a 0.8759-0.8780 range. Swiss retail sales data will be in focus today.

AUDUSD opened the Asian session at 0.9045, gapping down from Friday’s New York close of 0.9069 and slid to 0.9022. The aussie is being weighed down by the poor China trade numbers. China is a major trading partner for Australia.

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Asian Session – Yen steady after Bank of Japan policy remains unchanged

The focus of the Asian markets on Tuesday was on the Bank of Japan policy meeting which concluded after two days. As was anticipated by many, the BOJ held its policy unchanged and left its overnight call rate at 0.1% and the monetary base target at Y60-70 tln.

The BOJ also left its economic assessment of the Japanese economy unchanged, noting that the moderate economic recovery is continuing. The BOJ said that although export growth has levelled off there has been a pick up in capital spending, and that industrial production has been increasing at a somewhat accelerated pace.

USDJPY eased back to a low near 103.15 following the BOJ decision. Earlier in the session it rose to a high above 103.40.

EURJPY slid after the BOJ but holds above 143.00 as it has been doing in Monday’s US session.

GBPUSD slid down to a low near 1.6630 stayed near its low after the release of the BRC like-for-like retail sales which came in at -1.0% y/y versus forecast of 1.6%.

AUDUSD initially slid down to a low of 0.9010 following the release of weak Australian data before ending the session little changed. The National Australia Bank (NAB) business conditions and confidence data) came in at 0 versus +5 previously and +7 versus +9 prior (respectively) . However, the pair remains on the defensive on uncertainty regarding the weak China data over the weekend and the geopolitical tensions between Russia & Ukraine.

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Asian Session – Yen strengthens on risk aversion over China concerns

Risk aversion led to a stronger yen while other major pairs drifted without clear direction as investors are taking on a cautious stance as concerns remain over a weakening Chinese economy after soft trade data earlier in the week. Also geopolitical tensions in Ukraine are weighing on market sentiment.

The only economic data releases today were from Australia. The Westpac report showed that consumer confidence in the country fell in March, extending its decline from a post-election peak in November.

The Australian dollar fell due to the domestic data as well as due to concerns over China, which is Australia’s major trading partner. Also Australia is a major producer of copper and iron ore, whose prices are tumbling recently. This is because copper is being used as collateral for loans in China, and with a slowing Chinese economy there are fears of defaults on these loans.

USDJPY opened the Asian session at 103.02 and came under pressure early as Asian markets started off on a nervous note (Nikkei went 2.4% lower) and Shanghai copper opening limit down. USDJPY eased to 102.78.

EURUSD opened the Asian session 1.3860 after another very quiet US session and traded a 1.3851/65 range. All of the market’s attention was on JPY and AUD pairs due to rising risk aversion sparked by China fears. Focus will turn to Euro zone industrial production data out later today although it is unlikely to have a large impact.

GBPUSD traded a tight range between1.6612-33 during the Asian session.

AUDUSD opened on Wednesday at 0.8977 and came under pressure early in the session due to soft Westpac consumer confidence numbers. Also weighing on AUD was falling copper and iron ore prices (Australia is a major exporter

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Forex Daily Analysis - 2 April 2014

The EUR/USD picked up 27 focuses today as eurozone Pmis demonstrated improvement over needed and German employments information reported a change with unemployment ticking down. The euro is exchanging at 1.3798. the euro EURUSD +0.27% was pushing higher against the dollar, creeping ever closer to that $1.38 level after information indicated the euro-zone fabricating PMI for March was affirmed at 53, easier than 53.2 seen in February. Still, the normal perusing for the first quarter arrived at the best result since the second quarter of 2011.

The GBP/USD eased today giving up 26 points to exchange at 1.6637 after manufacturing PMI dipped below forecast but remained in a positive zone. March UK Markit/CIPS manufacturing PMI printed at 55.3 vs 56.7 expectations the lowest since July 2012

The AUD/USD added 3 points giving back a bit of earlier gains after the RBA announcement. Glenn Steven’s did as expected and held rates and policy. Prior to the release the Aussie was at the 93 price level on stronger than expected Chinese data. The Chinese Governments Purchasing Managers’ Index rose to 50.3 in March, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today. That compared with February’s 50.2 reading and the 50.1 median estimates from analysts in a Bloomberg News survey. Numbers above 50 signal expansion. The Aussie is trading at 0.9268 at this writing.

The USD/JPY continued to decline as the sale tax increase goes into effect today. The JPY eased by 8 pips to trade against the US dollar at 103.30. The yen remained lower against the dollar after Bank of Japan data showed the Tankan index for sentiment among large manufacturers in the nation rose to 17 in the first quarter from 16 in the previous period. The Tankan was weak,” said Ken go Suzuki, chief currency strategist at Mizuho Securities Co. in Tokyo. “Some investors buying the dollar against the yen may take profits as it climbed above 103 in the past few days.” Gold is flat for the day moving between small gains and losses at 1284.80 after falling below the 1280 price on Monday for a few minutes.

Gold prices steadied on Tuesday, recovering early losses, as comments from Federal Reserve Chair Janet Yellen defending easy-money policies hurt the dollar, while a drop to seven-week lows overnight sparked interest from bargain-hunting buyers. The metal fell to a low of $1,278.34 an ounce in Asian trade as stocks rallied on the back of Yellen’s comments, which reassured investors that the bank would maintain monetary support for the U.S. economy.

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EUR/USD : is level for the day, exchanging at 1.3794 unable to support the 1.38 level after Spanish unemployment indicated a huge drop in cases and yearly GDP met desires, in spite of the fact that quarterly GDP printed underneath figure. The euro also ticked higher. Like the dollar it tends to draw support from prospects of higher world growth and is also supported by expectations the European Central Bank will steer clear on Thursday of any action to ease monetary policy. A rising dollar was this year’s big call for many banks and funds in January and most have been disappointed, with a falloff in growth in China and a euro bolstered by returning flows of capital instead the dominant trends.

GBP/USD : climbed by 14 points after construction PMI printed close to expectations but showing strong growth. The pound is trading at 1.6642 as traders evaluate the Bank of England’s next move now that the economy is recovering steadily. The improved outlook suggests the Bank of England may tighten monetary policy in the next 12 months.

AUD/USD : eased to trade at 0.9235 giving up 13 points after building approvals missed expectations. The currency continues to remain well above its trading range on hopes of stimulus from the Chinese government. The RBA kept the target cash rate at 2.5 percent, as expected, and kept its view that rates won’t change while the central bank supports the economy.

USD/JPY : gained 17 points to trade at 103.84 as the yen loses its value as traders are now expecting the Bank of Japan to add stimulus to offset the negative effects of the sales tax increase which went into effect on April 1st. The combination of rising global equity markets with rising U.S. Treasury yields is a catalyst for USD/JPY to move higher,” said Kit Juckes, analyst at Societe Generale

Gold : added $3.90 ahead of the ADP payroll release to trade at 1283.90 as traders begin to take position ahead of the ECB and the NFP over the next two days. The ADP jobs report will be the main event that traders are waiting for with data due to be released in just a few hours. Having fallen 8% in just over two weeks, gold “hasn’t found a host of willing buyers looking to pick up cheaper metal,” said UBS analyst Adel Tully. “Some buying interest has emerged on the lows, but further downside has been prevented largely because sellers are in short supply.”

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EUR/USD is flat ahead of the ECB meeting. the choice is expected in simply a couple of hours, yet the firecrackers will probably be later in the day at Mr. Draghi’s question and answer session. Merchants can anticipate that the Governing Council will simplicity arrangement unassumingly at this gathering, through a little cut in key rates or liquidity activities. Aggressive unconventional policies remain distant. The ECB may introduce new liquidity measures today to counter tightness in funding conditions, but we think they will most likely not deliver additional rate cuts or monetary policy accommodation.

GBP/USD gave up 16 points to trade at 1.6610 after UK services PMI missed expectations and also printed lower than last months. It is not a major upset to the markets but enough to see some traders moving away from the pound as the US dollar continues to climb. Sterling fell to a day’s low against the dollar and the euro on Thursday, after UK services sector expanded at a slower-than- expected pace in March.

AUD/USD eased by 33 points against a much stronger greenback after more data showed a steady recovery in the US economy. Retail sales in Australia missed expectations this morning and the trade balance widened more than expected but remain less than the previous months. In Australia, the RBA wants Australia’s biggest banks and building societies to pay a levy to help pay for a fund that will protect their own depositors in the event of a banking collapse.

USD/JPY soared to trade at 104.05 as the dollar gained momentum after the ADP data release on Wednesday showed that the private employers created more jobs than in previous months and there was a strong upward revision to the previous month. The Japanese yen declined against other major currencies in Asian morning deals on Thursday as investor sentiment rose on strong U.S. data and China’s mini stimulus package designed to boost spending on railways and tax relief for struggling small businesses.

Gold reversed course and begin to ease giving up $4.50 to trade at 1286.30 after climbing in the Asian session as high as 1293. Traders are beginning to take positions ahead of tomorrow’s NFP and after comment from several Federal Reserve members all saying that we would likely see an interest rate increase in mid-2015. Investors are waiting on a European Central Bank policy statement later in the session and monthly jobs data from the U.S. Friday.

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EUR/USD kept on decliing in front of the non-cultivate payroll report. The euro keeps on traing
downwards after dovish remarks from ECB Director Draghi, who made no move yesterday yet talked
down expansion and offered signs that the Bank could add liquidity to the business sectors.
GBP/USD eased to trade at 1.6585 falling steadily since construction PMI missed expectations and the
US dollar continued to gain ahead of the NFP release due shortly. Sterling headed for the bottom of its
recent range against the dollar on Friday, hurt by a bullish week for the US currency and a couple of
marginally weaker than expected numbers on the British economy.

AUD/USD gave up 9 points to trade at 0.9283 remaining close to its record high the currency fell against
a strong USD and a minor data release from the ANZ jobs advertisements which slipped below last
month. It has been a slow trading morning with Chinese markets closed traders looked for any signs or
news.
USD/JPY is flat this morning ahead of the Bank of Japan meeting trading at 103.28 after steadily
declining last week against a strong greenback. Japan’s central bank will probably double purchases
of exchange-traded funds in a second round of monetary easing under Governor Haruhiko Kuroda
anticipated in coming months, a Bloomberg News survey of economists’ shows. The dollar remained
stronger following a three-week rally before the U.S. central bank releases minutes this week of the
Federal Open Market Committee’s March meeting.Leveraged funds boosted their bearish bets on the
U.S. currency to the most in almost four years last week, spurring speculation it will strengthen as some
of those positions are reversed.
Gold gained to trade at 1292.50 as traders begin to take positions prior to the non-farm payroll release
wid could send the US dollar soaring or just the opposite. Gold headed for a third weekly decline, the
longest run of losses since September, before a report forecast to show the fastest jobs growth in the US
in four months, supporting further reductions to monetary stimulus.

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EUR/USD is exchanging at 1.3715 up by 11 focuses as the euro picked up a bit of force after the arrival of German Industrial Production numbers indicating a positive build in processing. A week ago on April third, the European Central Bank (ECB) took off its most recent redesign on money related strategy. President Mario Draghi reminded markets that dangers in the euro zone stay to the downside. Speculators keep on showwing enthusiasm toward euro region holdings. This investment probably illustrates at any rate a portion of the headstrong quality in the euro.

GBP/USD is completely flat today, with no direction as traders are taking a break. The pound is holding at 1.6575 ahead of the Bank of England meeting later this week. The Fed will release on minutes of its March 18-19 meeting on April 9. Policy makers at the gathering cut monthly bond purchases by $10 billion to $55 billion. Fed Chair Janet Yellen said the central bank may start to raise interest rates “around six months” after ending its asset-buying program.

AUD/USD gave up 9 points to trade at 0.9283 remaining close to its record high the currency fell against a strong USD and a minor data release from the ANZ jobs advertisements which slipped below last month. It has been a slow trading morning with Chinese markets closed traders looked for any signs or news

USD/JPY is flat this morning ahead of the Bank of Japan meeting trading at 103.28 after steadily declining last week against a strong greenback. Japan’s central bank will probably double purchases of exchange-traded funds in a second round of monetary easing under Governor Haruhiko Kuroda anticipated in coming months, a Bloomberg News survey of economists’ shows.

Gold is trading at 1299.00 down by $4.50 as traders book profits after the commodities climb at the end of last week. Gold rose Friday to its highest level in more than a week after data showed the U.S. created slightly fewer jobs than expected in March. This suggested the Federal Reserve is likely to keep interest rates near zero well into 2015 and encouraged lurking buyers to step into gold. Although prices back below $1,300 Monday, they held onto the majority of their gains. After a closer analysis the upward revision to the previous month’s jobs creation turned traders to a more positive note that the Fed will move swiftly to cut its asset purchases and end the program.

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EUR/USD added 27 focuses to exchange at 1.3769 after the dollar plunged as dealers re-assessed the FOMC taping and rate increment. Dealers are holding up to see the points of interest of the last Fed gathering in tomorrow’s moment discharge. Climbing pressures in Ukraine likewise tempered speculator craving for danger. Ace Moscow dissenters in eastern Ukraine seized arms in one city and announced a separatist republic in an alternate. Ukraine on Monday called the moves a piece of a Russian plan to legitimize an attack.

GBP/USD soared today adding 91 points after positive economic data releases. The GBP is trading at 1.6699 and is likely to break the 1.67 range before the end of the day. Industrial production and manufacturing production both exceeded forecast. Sterling rose to its highest in three weeks against the dollar and a one-month maximum against the euro after data on Tuesday showed industrial output rose much faster than forecast in February.

AUD/USD added 11 points to trade at 0.9281 after the release of the NAB business confidence report which printed a bit lower than the previous month. Traders moved from equities to commodity currencies as earning season begins today. The value of Reserve Bank of Australia’s foreign currency reserves jumped by $US10 billion ($10.8 billion) last month just as emerging market central bankers accelerated their intervention in foreign exchange markets in an attempt support their economies.

USD/JPY gave up 12 points to trade at 102.98 remaining well above its trading range as the JPY strengthened after the Bank of Japan held rates and policy this morning. Today’s decision said that Japan’s economy has continued to recover moderately, and noted front-loaded demand ahead of the April sales-tax bump. Overseas economies, mainly advanced ones, are starting to recover, the BOJ said.

Gold continued to climb today as geopolitical tensions grew between Russia and the Ukraine. Gold added $12.20 to trade at 1310.50. Foreign currency market sources think that the Federal Reserve will postpone the tapering of bond purchases, following the disappointing jobs report for March. Businesses added 192,000 jobs during the month, below expectations of 199,000 jobs. The unemployment rate in the US remained unchanged at 6.7%, compared with expectations of a drop to 6.6%.

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Fundamental Analysis April 11
EUR/USD keeps on inflaing exchanging at 1.3866 including 11 focuses moving without much explanation behind the additions. The euro searches headed for a genuine fall in the close term. he dollar dropped to more than two week-lows against the euro and Swiss franc on Wednesday after minutes of the most recent Federal Reserve money related arrangement gathering recommended that the U.s. national bank may not raise premium rates at whatever time soon.

GBP/USD is quiet ahead of the BoE meeting later today, although the MPC is not expected to make any changes and will avoid a public statement traders are remaining cautious before the release. The GBP exchange rate jumped by half a cent to a near-2-month high in reaction to the latest Minutes from the Federal Reserve, which showed that policymakers are concerned that a premature hiking of interest rates could damage the burgeoning economic recovery.

AUD/USD added 13 points to break over the 94 level trading at 0.9402 after a strong employment release this morning. The Aussie unemployment rate fell to 5.8% a much larger fall than expected. The nation also created a lot more new jobs that forecast. Australia’s dollar reached a more than four-month high versus the greenback after the government reported unemployment unexpectedly fell for the first time since September.

USD/JPY eased by 15 points to trade at 101.84 as the yen has steadily gained since the Bank of Japan decision to hold rates and stimulus. Mr. Kudora later gave a glowing outlook for the economy and said that there was little need for additional stimulus. he dollar drifted at three-week lows against a basket of major currencies early on Thursday, having fallen for a fourth session after minutes from the Federal Reserve’s March meeting disappointed dollar bulls.

Gold added $16.40 to trade at 1322.30 climbing steadily after the FOMC minutes release and on geopolitical tensions with Russia. Gold extended gains to a third session on Thursday, scaling fresh two-week highs, after minutes from the Federal Reserve’s policy meeting showed that officials were not keen on increasing interest rates anytime soon.

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[B] Fundamental Analysis April 16[/B]
EUR/USD fell on Tuesday after the arrival of a disillusioning German ZEW Economic Sentiment report. The administration reported a drop to 43.2 from 46.6. Moguls were searching for 46.3. The decrease in the ZEW puts further weight on the European Central Bank to make a move to empower the economy, however the ECB is liable to hold up until the arrival of most recent CPI information on Wednesday. This report is relied upon to show a 0.5% perusing which will be unaltered from the past month.

GBP/USD rallied after U.K. inflation data fell in-line with expectations. The headline year-on-year CPI data fell to the lowest level since October 2009 and the year-on-year measure of retail inflation declined to its weakest level in nearly five years. One bright spot was the surge in the House Price Index. This report exceeded expectations with a 9.1% rise. Traders were pricing in an increase of 7.2%.

AUD/USD rose slightly following the release of the latest Reserve Bank minutes, but failed to hold on to its gains. The minutes didn’t offer any surprises for traders and was viewed as somewhat neutral. Some traders thought the recent run up in the Aussie would have been addressed in the minutes, but the central bank seemed to be unfazed by the price level.

USD/JPY finished flat-to-slightly better following the release of better-than-expected U.S. consumer inflation data. According to the latest data, the U.S. CPI rose 0.2 percent in March, versus expectations of a 0.1 percent gain. Helping to limit gains was the weak Empire State Manufacturing Index. Traders were looking for a robust gain of 8.2. The actual report showed a decline of 1.3.

Gold futures plunged sharply lower after the better-than-expected U.S. CPI report helped trigger a rally in the dollar. Since gold is dollar-denominated, a stronger dollar tends to weaken demand for gold, pressuring the commodity.

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EUR/USD gained 20 points to trade at 1.3835 and I cannot explain why. CPI missed expectations which will force action from the ECB. Perhaps it is a correction after comments from Mr. Draghi and other ECB members over the weekend about stimulus to push inflation upwards had already been taken into account by the markets.

GBP/USD remains the stellar performer as the UK economy keeps moving forward showing a stronger recovery than the US. Today the unemployment figure drops 2 points to report at 6.9% which might push the Bank of England to consider raising interest rates.

USD/CAD traded between small gains and losses as the US dollar gained a bit of momentum to trade at 1.0981 ahead of US and CAD data due towards the end of the European session.

Gold is trading just over the 1300 level at 1302.50 up $2.20 today ahead of US data and this evenings speech by FOMC Director Yellen. Pressures continue to climb in the Ukraine but traders are no longer moving to safety. Fed Chair Janet Yellen is due to speak on monetary policy and the economic recovery later on Wednesday.

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Fundamental Analysis April 22
EUR/USD completed marginally better on Monday joined by unstable value movement. Volume was down as a result of the developed Easter festival. Germany, Italy and France are all on bank occasion today.

Trading was limited in the GBP/USD today due to an extended Easter bank holiday. Later this week, investors will get the opportunity to react to the latest data from the Monetary Policy Committee although this report is expected to show no surprises. On deck is the MPC Official Bank Rate Votes, followed by Public Sector Net Borrowing.

AUD/USD saw some volatility on Monday. Thin holiday trading conditions may have had something to do with the two-sided trade. Traders could be positioning themselves ahead of the CB Leading Index report

Gold futures were down a little more than 0.50 percent on Monday. Price reached a low of $1281.80 before stabilizing. The market crossed to the weak side of a retracement level at $1289.45 before taking out last week’s low. Traders are looking for the slide to continue to at least the April 1 bottom at $1277.40, followed by a 61.8% level at $1265.20.

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EUR/USD picked up 20 focuses to exchange at 1.3813 staying inside its late exchanging reach with no Eurozone information and US information still before the businesses.

GBP/USD was the star performer today adding 35 points to trade at 1.6827. Decent factory production figures combined with another strong month for the labor market sent March’s index of US Leading Indicators higher.

AUD is trading at 0.9348 after trading as high as 0.95 just a week ago. The US dollar has climbed above the 80 level as is expected to continue to gain as US data supports the defrost of the US economy after the severe winter freeze.

USD/JPY was the most active currency pair on Monday and continues to climb on Tuesday trading at 102.67 above its average trading range as data released on the Easter Monday holiday upset traders and analysts.

Gold recovered a few dollars today moving between small gains and losses with little direction as tensions seemed to ease in Ukraine. Gold is trading at 1291.40. Gold recovered from early losses on Tuesday as the dollar gave back some gains, but sentiment among investors continued to be fragile on further outflows from bullion-backed funds.