Gold maintained a firm uptrend tone

With equities unable to make further headway, gold maintained a firm tone and approaching the $1,249 resistance area after testing 1218.00 1220.00 support lines. The dollar’s failure to sustain gains seen after the strong CPI data on Wednesday triggered fresh market doubts surrounding trends and also provided net support to gold prices which edged towards 3-month highs around $1,243 per ounce seen last week. There were no significant comments from Fed Chair Yellen in the second round of her congressional

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The U.S dollar failed to sustain gains

The US dollar failed to sustain gains seen after the strong CPI data on Wednesday after the strong CPI data on Wednesday. The dollar pushed sharply higher following the stronger than expected US economic data, the US currency was unable to extend the gains and retreated to trade slightly in negative territory at the European close. US 10-year bond yields were also unable to hold above the 2.50% level The dollar remained on the defensive during Asian trading with USD/JPY

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UK 10-year gilt yields decline on weak labor market

The UK 10-year gilt yields slumped, following slight weakness in the country’s labor market, disappointing what markets had initially anticipated. Also, investors remain keen to focus on the January retail sales, scheduled to be released on February 17. The yield on the benchmark 10-year gilts, which moves inversely to its price, jumped 2-1/2 basis points to 1.28 percent, the super-long 30-year bond yields also surged 2-1/2 basis points to 1.97 percent and the yield on the short-term 2-year too edged

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German bunds plunge

The German government bunds plunged Wednesday following expectations of an improvement in the country’s trade balance during the month of December. The yield on the benchmark 10-year bond, which moves inversely to its price, rose early 4 basis point to 0.36 percent, the long-term 30-year bond yields also jumped 6 basis points to 1.17 percent while the yield on short-term 4-year bond moved higher by over 1-1/2 basis points to -0.61 percent by 08:10 GMT. Germany’s exports climbed 1.2 percent

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Dow Jones Industrial Average rose 351 points last week

The Dow Jones Industrial Average rose 351 points last week to close at a new record of 20,269.98. All three of Wall Street’s main indexes recorded their third straight weekly gain. Stocks surged on Thursday after President Trump told U.S. airline executives he was planning to announce “big league” tax reforms in the coming weeks. Prior to the announcement, investors had been anxiously awaiting Trump’s economic action plan following a campaign filled with lofty promises about boosting the economy. In

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US Oil Rig Count Rises by 8 to 591

Last week the oil-rig count rose by 17 to 583, while the total rig count increased by 17 to 729. The number of gas-only rigs rose 4 to 149. This brings the total number of active oil and gas rigs to 741, an increase of 12. The total count is now higher by 200 from a year-ago, while the oil-only is in positive territory over the same time period by 178 rigs. U.S. oil driller Baker Hughes reported that the

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US dollar index followed through on Friday.

The US dollar index followed through our target today, reaching a top of 101.01 as we expected ( TP ) 100.95 – 101.05 that we posted a few days ago. The move took a few day of back and forth trading but at the end it has come to be a winner trade as we planned at the beginning of the week. in the meantime, USD/JPY still moving as we expect after reaching the low of 111.56, reaching as high

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Market Roundup

European shares ended at their highest level in two weeks on Thursday, with some major companies such as Frances second-biggest listed bank Societe Generale and oil major Total advancing after their results. UKs benchmark FTSE 100 closed up by 0.6 percent, the pan-European FTSEurofirst 300 ended the day up by 0.89 percent, Germanys Dax ended up by 0.9 percent, France’s CAC finished the day up by 1.3 percent. Wall Streets three main indexes surged to fresh record highs on Thursday

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U.S. Treasuries plunge ahead of 10-year auction

The U.S. Treasuries plunged Thursday ahead of the 10-year auction, scheduled to be held later in the day. Also, investors are awaiting the release of initial jobless claims data, besides, the Federal Open Market Committee (FOMC) member James Bullard’s speech scheduled for late today. The yield on the benchmark 10-year Treasury jumped 2-1/2 basis points to 2.36 percent, the super-long 30-year bond yield surged 3 basis points to 2.99 percent while the yield on short-term 2-year note pushed nearly 1/2

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Philippine central bank keeps policy rates unchanged

The Philippine central bank kept its policy settings unchanged today, as widely expected. The interest rates were kept on hold. Policy tools have been stable since the formal shift to the interest rate corridor in June 2016 with the overnight deposit account rate at 2.5 percent, overnight lending facility at 3.5 percent, and the policy overnight reverse repo rate at 3 percent. Inflation expectations stayed in the 2 percent to 4 percent target range. While supply side pressures control the

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RBNZ kept its key overnight cash rate unchanged at 1.75%

Reserve Bank of New Zealand announced monetary policy last night and kept its key overnight cash rate unchanged at 1.75%. •According to RBNZ policymakers, commodity prices, more positive business and consumer sentiment lifted global economic outlook but uncertainties remain due to surplus capacity and rising geo-political uncertainty. (Mild hawkish bias) •It notes recent rise in both short-term and long-term inflation, largely due to a rise in commodity prices. The central bank feels that the monetary policy would remain accommodative but

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Egypt, Sisi heads first meeting of the Supreme Council of Tourism

President Abdel Fattah el-Sisi chaired today the first meeting of the Supreme Council of Tourism, in presence of Prime Minister Sherif Ismael and Ministers of Defence & Military Production, Planning, Youth & Sports, Foreign Affairs, Interior, Local Development, International Cooperation, Culture, Communication, Civil Aviation, Finance, Antiquities, Tourism and Investment as well as Heads of the Egyptian General Intelligence, the Administration Control Authority, Steering Committee of the Egyptian Tourism Federation and South Sinai’s Investors Association. At the beginning of the meeting,

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Egypt Electricity bills Will increase again in July

Electicity bills will increase again in July as result of the restructuring of energy prices due to the rise in fuel costs, spokesperson for the Electricity Ministry Ayman Hamza said, indicating that the ministry’s target is to maintain stability in the sector. Speaking to the privately-owned Shorouk newspaper, Hamza said a new hotline has been allocated to most electricity distribution companies nationwide to receive citizens’ complaints about the price hikes. Any citizen has the right to not pay their bill

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Dana Gas profit dropped 95% in fourth-quarter

United Arab Emirates-based energy firm Dana Gas on Thursday reported a 95 percent drop in fourth-quarter net profit, partly because of a one-off gain in the year-earlier period. Dana made a net profit of $7 million in the three months to Dec. 31, according to Reuters calculations. This compared to a profit of $134.2 million in the same period a year earlier. In the fourth quarter last year, the company received cash from RWE, settling an arbitration case involving Pearl

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Gold downside seems limited

Gold moved to fresh three-month high yesterday and now trading within a narrow trading band around $1240 level. Persistent uncertainty around the US President Donald Trump’s policy stance and political instability in Europe continues to drive flows towards traditional safe-haven assets and has been supportive of the precious metal’s recent leg of up-move. Declining US Treasury bond yields and fading bullish momentum in the US equity markets is also boosting gold demand as an attractive alternative investment asset class. Any

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Gold prices rise again amid ongoing worries over political risks in Europe.

Gold prices rose for the fifth day in a row on Wednesday, extending a rally to a fresh three-month high amid ongoing worries over political risks in Europe and economic uncertainty in the U.S. Gold for April delivery on the Comex division of the New York Mercantile Exchange rose to a session high of $1,245.50 a troy ounce, a level not seen since November 11. It was last at $1,243.05 or +0.4%, a day earlier. Investors remained focused on French

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Bundesbank chief retaliates against US accusation

Arguably Europe’s most powerful central banker, Jens Weidman, the chief of Bundesbank has retaliated against the claims made by top trade advisor to US President Donald Trump, Peter Navarro, who called Germany a currency exploiter, benefiting from weaker euro. Mr. Weidman called the claim as absurd. Mr. Weidman said that the German firms are successful exporters because they are well positioned in the global markets and can convince people with innovative products. He added, “the accusation that Germany is exploiting

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Billions of barrels of oil in stock pose threat to price recovery

Except for the initial rise in prices, the OPEC and N-OPEC don’t seem to have much of an impact in the market so far and of the reasons for that has been the billions of barrels of oil sitting idle as stock, ready to be dispatched. Compared to these billions of barrels of oil and other petroleum products, the OPEC production is expected to reduce just 1.758 million barrels per day. If the demand doesn’t outpace the increase in supply

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Chinese inflation to hover slightly below 2.5 pct

China’s real economic growth is expected to continue to slowdown gradually due to the current economic transitioning. Authorities have recently underlined stability over rapid economic growth, but fiscal stimulus injections in infrastructure would possibly be continued, maintaining the country’s output growth at around 6.5 percent year-on-year in 2017, noted Scotiabank. Real GDP growth is expected to slow down to 6 percent next year. Moreover, the Chinese consumer and services sector would be increasingly driving the economic activity, in addition to

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UK gilts jump ahead of 30-year auction

The UK gilts jumped Wednesday ahead of the 30-year super-long bond auction, scheduled to be held on Thursday. Also, investors will remain focused on the Bank of England (BoE) Governor Philip Lowes’s speech due on February 10. The yield on the benchmark 10-year gilts, which moves inversely to its price, plunged nearly 2 basis points to 1.27 percent, the super-long 30-year bond yields also slumped nearly 2 basis points to 1.97 percent and the yield on the medium-term 4-year edged

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National Bank of Poland likely to keep key rate

The National Bank of Poland is expected to keep the policy rate on hold during its meeting today, noted Commerzbank in a research report. Other policy parameters are also anticipated to be kept unchanged today. Although markets are expected to be keeping an eye for the degree to which MPC hawks are starting to feel correct that inflation is set to accelerate to the target rate of 2.5 percent. The PMI data has rebounded in the past month, while manufacturing

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Moody’s: Challenging global environment

Moodys Investors Service says that Asia will remain among the fastest-growing regions globally in 2017, but it faces several challenges that could weigh on credit conditions for Asian debt issuers. “Challenges surrounding Chinas structural reforms, higher interest rates in the US, rising protectionist sentiment in advanced economies, potential political shifts in the EU, and elevated leverage in Asian economies all pose risks in the year ahead,” says Michael Taylor, a Moodys Managing Director and Chief Credit Officer for Asia Pacific.

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Turkish industrial output grows year-on-year in December

Turkish industrial production dropped in December on a sequential basis. On a seasonally and calendar adjusted basis, the nation’s industrial output fell 0.2 percent in the month as compared to the previous month, according to Turkish Statistical Institute. Within the industry, mining and quarrying output fell by 3.4 percent, while electricity, gas, steam and air conditioning supply index dropped 0.2 percent sequentially in December. Meanwhile, manufacturing output remained the same. On a year-on-year basis, Turkey’s industrial production grew in the

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German bunds rally ahead of 10-year auction

The German government bunds rallied Wednesday ahead of the 10-year auctions scheduled for later in the day. Also, investors are eyeing the release of December trade balance data, scheduled for February 9. The yield on the benchmark 10-year bond, which moves inversely to its price, fell 2 basis points to 0.34 percent, the long-term 30-year bond yields also plunged 2 basis points to 1.13 percent and the yield on short-term 2-year bond slipped 1 basis point to -0.78 percent by

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Le Pen leads in latest IFOP poll

Leader of the National Front in France, Marine Le Pen announced her bid to become president. The far-right politician believes France should exit the European Union, drop the euro, and fight radical Islam. Le Pen said she would take France out of the euro if elected. Marine Le Pen is a viable contender in the next French elections. Le Pen is currently leading polls to win the first round of the presidential election, but is expected to lose the run-off

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Euro exchange rate reflects eurozone economic situation.

European Central Bank (ECB) Executive Board member Benoit Coeure told French newspaper Le Parisien on Tuesday that the current euro exchange rate is a valid reflection of the blocs economic state and not a result of an effort to weaken it. Coeure noted that ECB does not have an exchange rate target and added that the euro is now at a level appropriate to the European economic situation and serves as a lever of sovereignty. The single currency depreciated nearly

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US $ index almost at Tp

The reversal on The dollar index 1H time frame did not disappoint, I t has been move upward since Monday and almost near the target line. After reaching all the way down to 99.20, the dollar index 1H time frame formed an inverse Head and Shoulder, Head @ 99.20, left shoulder @99.40 and right shoulder @99.51 after it reach the high of 100.28 yesterday Now the US $ index has been rising since yesterday, we are estimating the target to be

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Gold futures rise again

Gold futures rose to new level yesterday, it reached as high as 1238,00 on Monday and now talking a breather before next Tp target @1249,00 Safe haven demand increasing since Donald Trump took office as the new president of the U.S,l uncertainty about the new administration, fiscal policy, tension around the world has been increasing week after week. Travel ban ordered by Donald will be discussed in court today, Last Friday, U.S. District Judge James Robart suspended Trump’s ban, opening

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Usd/Jpy complete, next line coming up

The dollar edged down again, attempt recovery failed on Monday after declining for consecutive three sessions, as data released on Monday showed U.S. Labor market conditions index rose to 1.3 in January from previous revised 0.6, indicating that the labor market strengthened during the same period. The major are in consolidation phase, as political uncertainty around the world triggered risk-off market sentiment. The pair trades 0.2 percent up at 111.91, after falling as low as 111.59 earlier, it’s lowest since

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Gold rise to a new level

Gold futures rise above 1230.00 on Monday, safe haven traders pushing Gold to a new high level today. Wall Street’s top banks expect just two rate hikes from the Federal Reserve this year and see only a modest risk to the U.S. central bank being pressed into a more aggressive pace of monetary policy tightening, a Reuters poll showed on Friday. Gold is highly sensitive to rising U.S. rates, which increase the opportunity cost of holding non-yielding bullion while boosting

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Aussie slumps following downbeat retail sales

The Australian dollar declined from a three-month peak hit last week after data showed retail sales eased in December, raising concerns over the economys lack of momentum. The continents retail sales fell 0.1 percent in the month of December, below expectations for a 0.3 percent increase and were the first monthly decline since December 2015. The Aussie trades 0.2 percent down at 0.7662, hovering away from a high of 0.7696 hit on Thursday, it’s strongest since Nov. 10. Investors will

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Australian bonds snap decline following surprise fall in retail sales

The Australian bonds snapped decline at the start of the week on Monday, following surprise tumble in the country’s retail sales during the month of December. Also, investors remain cautious ahead of the Reserve Bank of Australia’s (RBA) first monetary policy of 2017, scheduled to be held on February 7 for further direction in the debt market. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, plunged nearly 2-1/2 basis points to 2.78 percent, the

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AUD/USD outlook

AUD/USD Bulls in control since the start of 2017, they have been pushing the pair week after week, Aud/Usd up 6.69% against the dollar since January which translate to +482 pips. The seasonally adjusted Australian trade surplus for December was reported at $3.51 billion (AUD), up 72% from the revised $2.04 billion in the prior month. Analysts had been calling for a surplus of $2 billion and the positive surprise resulted in a stronger Aussie Dollar across the board. A

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Nzd/Usd outlook

Nzd/Usd Bulls pushed the KIWI up 5.69% since January, 2017 until it reached 0.7320 as of Friday’s close last week for a gain of 394 pips since the Bulls took control. As the US currency remained on the defensive, NZD/USD continued to edge higher and approached the 0.7330/50 resistance which has halted advances twice over the past week. Any break of this resistance area would be likely to trigger a move towards 0.7366 and 0.7403 next 2 lines of resistance.

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EUR/USD outlook

Fundamentals and technicals support Eur/Usd long since we posted our view and as of this writing, the deterioration in the average hourly earnings data follows a subdued reading for November where earnings declined 0.1% versus an expected rise of 0.2%. This exacerbated the negative association with the downward revision in the December data. The poor earnings data is likely to bring up concerns over the effectiveness of a strong labor market on upward inflationary pressure, a subject that was brought

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Gold Price outlook

Gold remains to the upside, with a solid break above $1,220 expected in the near term. In the US Average earning rose 0.1% for the month, well below consensus forecast for 0.3% gain. The December increase in average earnings was also revised down to 0.2% from the originally reported 0.4%. The annual increase in earnings, as a result, slowed to 2.5% from 2.9% previously and was well below the 2.9% expected rate. The earnings data appears to be the most

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US Dollar Index

The Dollar Index slammed again after NFP report yesterday, the correction higher came to an end at the release of the event. Despite the good numbers for NFP, the market was not satisfied and took the US dollar down again to continue the down move. Last week before the job report the Dollar index went down and broke 99.40 support line, on Friday the dollar came back to test resistance line @100.18 before it continue the down, finishing the day

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Crude Oil Futures

Crude Oil Futures contracts has in a broad sideways trading range since December, 2016. It has been hard for crude oil futures to continue the up move since USD/JPY has been going down and US rigs count increasing week after week. Baker Hughes said the active number of oil rigs rose strongly for a third week in a row, jumping by 17 to 583 for the week ending February 3. The total is now the most number of rigs online

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Patrick McHenry slammed the Federal reserve chair Janet Yellen

The Vice Chairman of the Financial Services Committee in the United States, Patrick McHenry slammed the Federal reserve chair Janet Yellen by suggesting the Federal Reserve’s negotiation on regulations are not necessarily serving the best interests of the United States and called to cease any such activity unless the new administration appoints officials to do so. Here is the content of the letter in full. “Dear Chair Yellen, I am writing regarding the Federal Reserves continued participation in international forums

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German service sector decelerates for second consecutive month

German services sector growth slows down for the second consecutive month in January. The final seasonally adjusted Markit Germany Services PMI Business Activity Index dropped to 53.4 in January from 54.3 in December. It indicated towards a strong growth but a slowdown from the previous month and was below the average over 2016 as a whole. Surveyed companies attributed larger activity to new business gains, although there were reports of subdued demand in certain cases. The final Markit Germany Composite

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German bunds tumbled

The German government bunds tumbled Friday as investors and small traders cashed in profits on the last trading day of the week amid a timid trading session that lacked release of significant economic data. However, market participants shall remain keen to focus on the Eurozone’s December retail sales data, scheduled to be released later in the day, by 10:00GMT. The yield on the benchmark 10-year bond, which moves inversely to its price, jumped over 2 basis points to 0.44 percent,

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The Taiwanese dollar has gained 3.75% against the U.S. dollar

The Taiwanese dollar has gained from equity inflows due to TWSE index’s attractive estimated dividend yield for coming 12 months. Year-to-date, the Taiwanese dollar has gained 3.75 percent against the U.S. dollar, outperforming other emerging market Asian currencies except the South Korean won with continued equity inflows. Foreign investors have increased their holdings in local main board shares by USD 1.47 billion this year. On Wednesday, the U.S. Fed officials unanimously voted to keep their benchmark rate unchanged in a

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Indian sovereign bonds trade mixed

The Indian sovereign bonds traded narrowly mixed Friday as investors are eyeing the INR110 billion bond auction by the central government, scheduled to be held later in the day. Also, the Reserve Bank of India’s (RBI) first 2-day bi-monthly monetary policy meeting of 2017, scheduled to be held on February 7-8, is closely eyed by market participants. The yield on the benchmark 10-year bonds, which moves inversely to its price, rose nearly 1 basis point to 6.40 percent, the yield

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PBoC hikes short-term market interest rates,

The People’s Bank of China raised short-term market interest rates today. It repriced the short-term funding costs by hiking the 7-day reverse repo rate by 10 basis points from 2.25 percent to 2.35 percent. This move by the Chinese central bank challenges the initial projection that the central bank policymakers are inclined to keep a prudent monetary policy in 2017. The 14-day reverse repo rate was hiked to 2.5 percent from 2.4 percent, while the 28-day reverse repo rate was

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Egypt; Samsung agrees to enable installment services

Samsung expects the mobile market to see a slight retreat in sales value through 2017. The company expects a retreat of 5%, while the last year came to an end with a retreat of 10% year-on-year, affected by the Egyptian pound’s flotation and the retreat in the purchasing power. According to Sherif Barakat, executive vice president of Samsung Electronics Egypt, the company is planning to begin enabling instalment payment services in February for all the company’s products whether they are

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UK gilts rebound

The UK gilts rebounded Thursday after British parliamentarians decided to trigger Article 50 of the Lisbon Treaty in the first round of voting held Wednesday, it will take a span of 2 years for the country to separate from the 27-member European Union. Also, investors are awaiting the Bank of England’s (BoE) monetary policy decision, scheduled to be held later in the day. Markets will then, focus on the comments delivered by BoE Governor Mark Carney post the meeting minutes.

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German bunds bounce ahead of ECB

The German government bunds bounced Thursday ahead of the European Central Bank (ECB) President Mario Draghi’s speech scheduled for later in the day. Also, investors are looking forward to the release of December retail sales data due on Friday. The yield on the benchmark 10-year bond, which moves inversely to its price, fell 3 basis points to 0.46 percent, the long-term 30-year bond yields also fell 1/2 basis point to 1.20 percent and the yield on short-term 2-year bond plunged

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Singapore’s manufacturing PMI index rises

Singapore’s electronics and manufacturing PMI rose again in January. The manufacturing PMI rose 0.4 points to 51, while electronics PMI rose 0.6 points to 51.8. New orders index, production index and export orders all saw improvements. This follows the robust momentum witnessed in the December industrial production and NODX data, and also tallies with the moderate rebound witnessed in the recent business expectations survey where 2 percent of manufacturers were positive about the first half of 2017 outlook. This is

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UK government will release Brexit White Paper today

Theresa May’s government has won the approval to trigger Article 50 from the House of Commons with 498-114 majority votes and now in a concession to some members of the parliament, Ms. May’s government will release a Brexit White Paper that would discuss the government’s negotiating stance. However, Ms. May has already discussed the government’s approach in her speech on 17th January and it is far from clear what additional information the document might reveal. Nevertheless, all traders should keep

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U.S. construction spending drops in December

Construction spending in the U.S. ended the year 2016 on a weak note. Spending on construction dropped 0.2 percent sequentially in December, as compared with the rise of 0.9 percent in November. Consensus expectations were for the spending to grow 0.2 percent. The decline in spending was mainly due to the 1.7 percent fall in the public sector that weighed on the overall growth. Looking at the details, private spending grew 0.2 percent sequentially, led by residential spending that rose

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South Korean bonds hold gains

The South Korean bonds held gains Thursday despite the country’s consumer price inflation (CPI) jumping to over 4-year high in January. The 10-year bond yield, which moves inversely to its price, traded 2 basis points lower at 2.15 percent, the yield on 20-year note fell 1-1/2 basis points to 2.20 percent and short-term 3-year bond yields up 3 basis points to 1.66 percent. Overall consumer prices in South Korea were up 0.9 percent on month in January, data released by

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Article 50 legislation passes House of Commons

Last night, British Prime Minister Theresa May’s government was able to pass the Article 50 legislation successfully through the House of Commons. It was a big bi-partisan win for the government. The government has a majority in the House of Commons with 384 legislators but won with a 498-114 majority. This bill gives power to the government to trigger Article 50. The country’s Supreme Court ruled that the government doesn’t possess the power to trigger Article 50 of the Lisbon

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US dollar continue to slide

The US dollar continue to slide against all major currency, politics and the US administration pushing strongly to weaken the US currency and they have been very successful so far. Yesterday ADP  showed the US added 254k jobs for December great numbers, but the it did not help the dollar to rise only to hold the downside for just a little. The weakest pair Gbp rise against the dollar @1.2683 as of this writing. Aud/Usd rise to a new level

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German bunds plunge again ahead of 5-year auction

The German government bunds plunged Wednesday ahead of the 5-year auction scheduled to be held later in the day. Also, investors are eyeing the European Central Bank President Mario Draghi’s speech scheduled for Thursday. The yield on the benchmark 10-year bond, which moves inversely to its price, jumped 3 basis points to 0.46 percent, the long-term 30-year bond yields also surged 3 basis points to 1.18 percent and the yield on short-term 2-year bond rose nearly 1/2 basis point at

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Moody’s: US exit from TPP represents lost opportunity for Asia

Moodys Investors Service says that the withdrawal by the US (Aaa stable) from the Trans-Pacific Partnership (TPP) represents a lost opportunity, especially for countries that would have substantially expanded their export access to major markets. In addition, the end of TPP could slow the reform momentum the deal had fuelled. Moodys conclusions are contained in its just-released report “Sovereigns — Asia Pacific: US Exit from Trans-Pacific Partnership Represents Lost Opportunity for Asia”. Moodys notes that the TPP deal went far

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Indian sovereign bonds hold steady

The Indian sovereign bonds held steady Wednesday post the presentation of the 2017-18 Union Budget by Finance Minister Arun Jaitley. Also, investors are eyeing the INR110 billion bond auction by the central government, scheduled to be held on February 3. The yield on the benchmark 10-year bonds, which moves inversely to its price, hovered around 6.40 percent, the yield on long-term 30-year note fell 1/2 basis point to 7.03 percent while the yield on short-term 3-year note held flat at

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Copper mine strike to continue in Chile

The red metal, which is better known as an industrial barometer rose last night after it became clear that the workers at Chile’s Escondida mine operated by BHP Billiton rejected the management offer and decided to continue their strikes. The outcome of the vote was largely expected since the leaders of the union scrapped the offer of $12,000 as absurd and recommended to its workers to reject the offer. Escondida mine is one of the largest operating copper mines that

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Dollar caught in crossfire

The dollar struggled to regain its poise on Wednesday after the Trump administration accused Germany, Japan and China of devaluing their currencies to gain a trade advantage, adding to a risk-off mood that also kept stocks subdued. The U.S. currency suffered its worst January in three decades after President Donald Trump complained that every “other country lives on devaluation.” Just hours earlier, his top trade adviser said Germany was using a “grossly undervalued” euro to exploit its trading partners. The

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Eur/Usd

Donald Trump has been successful in weakening the dollar, yesterday the DXY broke the 100 points for the first time in a few month, Eur/Usd against all odds broke 1.0800 handle level the long waited target after breaching 1.0767. The move was fast after Trump trade’s advisor Peter Navarrow said the Euro is under valued, traders wasted no time on jumping on the wagon to take Eur/Usd to a new higher level 1.0810 yesterday, as of this writing the trading

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Trump’s trade advisor brands Germany as currency exploiter

Peter Navarro whom President Trump picked to head the new National Trade Council said that the euro is grossly undervalued and it is more like an implicit Deutsche Mark giving Germany unfair trade advantage over its partners. Speaking with regard to the Tran-Pacific Partnership (TPP) deal, Mr. Navarro said, “A big obstacle to viewing TTIP as a bilateral deal is Germany, which continues to exploit other countries in the EU as well as the US with an implicit Deutsche Mark

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UK gilts slump ahead of BoE monetary policy decision

UK gilts slumped Tuesday ahead of the Bank of England’s (BoE) monetary policy decision, scheduled to be held on February 2. Markets will the, focus on the comments delivered by BoE Governor Mark Carney post the meeting minutes. The yield on the benchmark 10-year gilts, which moves inversely to its price, jumped nearly 2 basis points to 1.46 percent, the super-long 30-year bond yields also rose 1-1/2 basis points to 2.09 percent and the yield on short-term 2-year moved 1

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German bunds plunged

The German government bunds plunged Tuesday after the country’s rate of unemployment fell to an all-time low during the month of January. However, markets largely shrugged off weaker-than-expected retail sales data. Further, investors now look forward to the release of manufacturing PMI, along with the 30-year bund auction, scheduled to be unveiled on Wednesday. The yield on the benchmark 10-year bond, which moves inversely to its price, jumped 3-1/2 basis points to 0.48 percent, the long-term 30-year bond yields also

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Japan industrial production rises in December.

Japans December industrial production grew 0.5 percent, higher than the market expectations of 0.3 percent growth, down from 1.5 percent in November, reported Ministry of Economic, Trade and Industry. The industries that had the largest increase in production in December 2016, were transport equipment, chemicals and components and electronic devices. Those that suffered the biggest setbacks were information and communication equipment and general-purpose machinery. Industrial production, which measures the pace of Japanese factories, is considered key to anticipating the pace

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Crude Oil Prices Extend Loses

Oil prices extend loses on Monday trading after declining more than 1% during Friday’s trade, due to the threat of rising U.S. production and increased rig counts. U.S. oil rig counts increased by 15 to 566 last week, the highest level since November 2015. Several global companies expect to expand their operations in the North American region in the coming years. Chevron’s CEO says tight oil plays such as the Permian and other North American unconventional oil areas could make

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German bunds slide on expectations of higher consumer inflation

The German government bunds slid Monday, following expectations of upbeat consumer price inflation, scheduled to be released later in the day. Also, markets are eyeing the release of fourth quarter gross domestic product (GDP), scheduled to be released on January 30. The yield on the benchmark 10-year bond, which moves inversely to its price, jumped 3 basis points to 0.48 percent, the long-term 30-year bond yields also surged 3-1/2 basis points to 1.22 percent and the yield on short-term 2-year

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Indian bonds remain volatile ahead of next week’s Union Budget

The Indian government bonds remained volatile ahead of the presentation of the country’s Union Budget, scheduled to be unveiled on February 1. Also, market participants cashed in profits at the start of the week amid losses in equities and oil. The yield on the benchmark 10-year bonds, which moves inversely to its price, fell nearly 1 basis point to 6.39 percent, the yield on long-term 30-year note also dipped 1 basis point to 7.03 percent and the yield on short-term

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Saudi Arabian money supply growth picked up in December

Saudi Arabian money supply growth picked up in December in a sign that the economy is regaining strength after a slump last year caused by low oil prices and government austerity measures, central bank data showed on Sunday. Annual growth in M3 money supply, the broadest money supply measure, rose to 0.7 percent in December, its highest level since January 2016, from 0.1 percent in November. Growth in other forms of money supply accelerated by similar margins. A $17.5 billion

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Bitcoin is a great hedge against system & could be new gold

China currently dominates the global trade in bitcoin and the price has been hit in recent weeks by a government-led prove on bitcoin exchanges in the country. “Four years ago bitcoin was very much used as trading in China,” bitcoin is getting worldwide attention with demonetization events in India — they just cancelled 84% of their bank notes — and in Venezuela, with hyperinflation.” “The philosophy of bitcoin is that it’s a limited digital asset,”. “There’s only 21 million bitcoin.

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Dow Jones Futures broke the 20,000 mark last week

Dow Jones index surged 0.8%, to close at a new record of 20,093.78. The blue-chip index climbed above 20,000 shortly after the open, following strong gains in the futures market early on Wednesday. It took over 4 weeks for the Dow to break the 20,000. market and volatility was back and forth during the last 4 weeks. most of Dow Jones component finished higher with gains. Dow surge help the European and Asian stocks to finish higher, Japan’s Nikkei225 rose

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NBE occupied the first position as the best bank in the Egyptian banking market

The National Bank of Egypt (NBE) arranged and managed 10 syndicated loans at a total value of EGP 50bn during 2016, according to NBE deputy chairperson Mahmoud Montasser. Montasser said that the NBE participated with EGP 14bn, or 28% of the total value, and he pointed out that the bank owns a capital base of more than EGP 70bn. According to Amr El-Shafei, head of corporate banking, loans, and syndication at the NBE, the syndicated loans arranged by the bank

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Saudi Aramco’s oil reserves confirmed by external audit

Based on a figure of 265 billion barrels, Aramco’s fields contain about 15 percent of the world’s proven reserves. Any finding that the reserves are significantly above or below that could affect the company’s market value in the listing. Aramco had asked two U.S. oil reserve auditing specialists to review its deposits. These are Gaffney, Cline and Associates, part of Baker Hughes and Dallas-based DeGolyer and MacNaughton. DeGolyer and MacNaughton completed its audit last year. Aramco said its crude oil

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Important events for this week

US Federal Reserve Interest Rate Decision. US Federal Reserve Open Market Committee (FOMC) rate decision will be announced on Wednesday February 1st. The focus will be on the statement as the FOMC waits for fresh evidence on economic trends and legislative changes.Markets will be looking for any warnings that an agenda of tax cuts could trigger a faster pace of rate increases. US Employment Report. The unemployment and participation rate data will be important elements, especially as the Fed considers

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Crude Oil Forecast

The weekly Baker Hughes oil rig count data released on Friday reported that the total US rig count increased by 18 to 712 following last week’s increase of 35. The number of active US rigs drilling for oil rose by 15 to 566 rigs according to the latest report from Baker Hughes. Last week, the US oil rig count increased by 29 to 551. The oil rig count is at its highest level in about 14 months and the pickup

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The market will be keeping an eye on the progress of the Brexit bill.

The BoE has claimed some of the responsibility for the fact that the UK remains one of the fastest growing G10 economies. In a speech in mid-January Governor Carney referred to the MPC’s decision to reduce the Bank rate by 25 bps and announce GBP70 bln of asset purchases last August. He remarked that “opting not to provide monetary stimulus would have meant, in all likelihood, inflation around the target at the two-year point of the forecast, but an output

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FX,gainers and losers for January, 2017

Politics is taking center stage in trading since Donald trump won the election and became the new President of United Stated.  Trade wars between countries on the rise and the value of their currency will fluctuate this year according to the political view change. Gainers January, 2017 Pair Low Close Gain% CHF/TRY 3.4620 3.8679 +11.71% EURTRY 3.7110 3.8652 +11.39% USD/TRY 3.5263 3.5652 +9.61% NZD/MXN 14.3584 15.1815 +5.73% AUD/MXN 14.9265 15.7750 +5.68% Losers January , 2017 Pair High Close  Loss% USD/NOK 8.6346

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Sweden’s December y-o-y retail sales weakest since October 2012

Sweden’s retail trade weakens significantly in December. On a year-on-year basis, Swedish retail sales rose 0.6 percent, a sharp slowdown from November’s year-on-year 3.8 percent growth. Consensus expectations were for retail trade to grow 3.5 percent. November’s figure was upwardly revised from 3.6 percent. The December figure was the weakest year-on-year figure since October 2012. On a sequential basis, Swedish retail sales dropped 2.9 percent in December, as compared with the 1.7 percent sequential rise in November and consensus expectations

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UK gilts recover amid rising risk of trade war

The UK gilts recovered Friday as investors sought safe-haven assets amid rising worries of a trade war, initiated by the United States, after President Donald Trump took office from January 20. Also, investors are now curiously eyeing the Bank of England’s monetary policy meeting next week. The yield on the benchmark 10-year gilts, which moves inversely to its price, slumped nearly 3 basis points to 1.48 percent, the super-long 30-year bond yields also plunged 2 basis points to 2.12 percent

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Germany’s December annual import price index rises

Germany’s import price index rose in December, coming in above consensus expectations. On a year-on-year basis, the index of import prices rose 3.5 percent in December, as compared with November’s rise of 0.3 percent, noted Destatis. Market expectations were for the prices to rise 2.7 percent year-on-year. The December’s annual price index rise was the highest since February 2012, when it rose 3.5 percent. In the months of October and November of 2016, the annual rates of change were -0.6

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Indian bonds snap long rally

The Indian government bonds snapped a long streak of rally on the last trading day of the week ahead of the INR110 billion central government bond auction scheduled for later in the day. Also, investors remain worried over the 2017-18 Union Budget, scheduled to be unveiled on February 1. The yield on the benchmark 10-year bonds, which moves inversely to its price, jumped 2-1/2 basis points to 6.44 percent, the yield on long-term 15-year note also rose 1-1/2 basis points

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Australia’s producer prices rise in Q4 2016

Australia’s prices continue to remain weak, showed the Australian Bureau of Statistics. In the fourth quarter of 2016, Australia’s producer price index was up 0.5 percent sequentially, as compared with the prior reading of 0.3 percent. It was in line with consensus expectations. On a year-on-year basis, price change for goods and services produced in the Australian economy rose 0.7 percent in the December quarter, as compared with the previous quarter’s reading of 0.5 percent rise. In sequential terms, the

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BoJ focus back in action

The BoJ’s consumer inflation rose by 0.1 pct in December. This came in as expected but lower than Novembers 0.2 pct rise. The BOJ began publishing its own consumer price calculations in November 2015 to better understand the underlying price trend. Its index strips away volatile fresh food and energy but includes processed and imported food prices. The Japanese central bank startled the market today by raising its buying in 5-10y bonds, trying to keep the 10y JGB yields near

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