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29 July: BOJ Interest rate decision today. EU/US Preliminary Q2 GDP later.

Currency markets have been choppy, although the US$ has been under some downside pressure since the Fed left policies unchanged, leaving markets unsure of the next direction direction due to the lack of any hint as to the timing of the next rate hike. The metals liked what they saw though, and Gold and Silver both jumped higher on the back of the dollar weakness. On the other side of the coin, WTI remains soft and appears headed lower due to the ongoing oil glut concerns. US stock indices …
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28 July: Fed stands pat & indicates that risks to the US economic outlook are reduced.

The FOMC has done as expected and left policy on hold while indicating that near-term risks to the U.S. economic outlook have diminished, opening the door to a resumption of monetary policy tightening later on this year. There was comparatively little volatility immediately following the decision although since then, after a minor dollar rally it has since come under some pressure and is a little lower at the time of writing. We shall have to see how that turns out but a cautious stance is …
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27 July: Australian CPI today, ahead of the US Durable Goods and FOMC. Fed expected to stay on hold.

The Yen was the main focus on Tuesday as it soared higher in early Asian trade on the back of reports that the prime minister Shinzo Abe will announce a less aggressive stimulus package than had been previously expected after his announcement last week. The BOJ Meeting is on Friday and the jury is open as
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26 July: Currencies, stocks steady ahead of FOMC, BOJ. WTI a bit lower.

Monday has seen a steady start to the week as traders sit it out while waiting for the major economic events due later in the week (FOMC, BOJ). The main events of the day on Monday saw the German IFO business climate drop to 108.3 in July, from 108.7 in June although it beat expectation of 107.5,
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25 July: FOMC, BOJ Meetings in focus this week.

Sterling was once again the main focus on Friday, and having begun the session looking quite well bid it continued its recent choppy action by falling sharply after the release of the very weak UK Services PMI, with little recovery heading into the weekend close although it is opening a little higher (1.3120) in early Monday trade. Elsewhere the currency pairs were mixed although the US$ retained a solid tone and edged higher, for its fifth straight weekly gain as expectations of a rate …
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22 July: Euro steady after ECB stays on hold. Stocks a little lower. Flash PMIs today.

The ECB kept interest rates and policy unchanged on Thursday and said that the immediate stress caused to markets by Britain’s vote to leave the European Union had been contained. ECB President Mario Draghi said it was too early to ascertain the full impact of Brexit and underlined that the ECB will be prepared to
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21 July: US stocks higher. Yen, commodity bloc lower. Cable underpinned by UK jobs data. ECB the focus today.

US stocks made another all time high today, helped by Microsoft's strong Q2 result, with the DJI reaching another all-time high, cracking 18500 in early London trade and heading on to 18561, with the S+P not far behind in reaching 2169. Gold and Silver headed in the other direction as safe haven demand wilted, with Gold also making a bearish outside day, suggesting further losses ahead. Likewise, the Yen remained under heavy pressure, as risk sentiment improved, by breaking above 107.00 in …
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20 July: US$ firmer after after solid housing data. Stock pause for breath.

US Stock prices ticked lower through most of the session although the DJI has just squeezed back up to another all time high (18493). Trader had earlier reacted to some disappointing U.S. earnings reports and signs that Britain’s decision to leave the EU could hurt other economies. At the same time the US$ rallied against most
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19 July: US stocks remain near all time highs. Yen pressured lower as safe haven demand recedes.

The coup in Turkey seems to have failed and this, coupled with expectations for more economic stimulus out of Japan and a higher US stock market have helped to weaken the Yen on Monday as safe haven demand diminishes, making the Jpy crosses the highlight of the day. Elsewhere it has been a fairly steady start to the week. While the main focus this week will be on the ECB Interest Rate Decision and Mario Draghi’s Press Conference, the attention today will be on the RBA Minutes and then …
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18 July: Political events dominating the price action. ECB Meeting this week’s focus.

The week was ending with the dollar picking up a generally bid tone after the release of some strong data, putting the possibility of a 2016 fed rate hike back on the table. The figures included a solid US Retail Sales reading for June (+0.6% vs 0.1%), the June PPI, up to 0.5%, the strongest increase in over a year, and the June Industrial Production, up 0.6% against previous -0.4%. On the other side of the coin was the CPI, up by less-than-expected, and the Rts/Michigan consumer sentiment for …
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