UK asset traders will have the Autumn Budget (Monday) and the latest BoE monetary policy release (Thursday) to focus on. Both however remain under the spell of Brexit.
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Monday, 29 October 2018
CoT Update: Crude Oil Speculative Long Positioning to Keep Shrinking
Last week, large speculators continued to sell as crude oil weakened, and with the techs turning broadly negative this is likely to continue.
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USD Outperformance on Merkel Exit, Fed QT and Month-End Rebalancing
Short term drivers may see the USD supported over the week. German political uncertainty on the rise as Merkel is set to step down. Fed Balance sheet unwind and month-end rebalancing to spur USD buying.
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EURUSD Struggling to Stay Above 1.1400, Sentiment Negative
EURUSD currently changing hands just above 1.1400 but with little momentum to the upside. The Italian budget debate continues to weigh, along with renewed German political fears.
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Yen, US Dollar May Rise as Commodity Currencies Fall with Stocks
The Yen and US Dollar may rise while commodity bloc currencies fall with stocks amid another wave of selling across the risky asset spectrum.
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Sunday, 28 October 2018
Asia Stocks Mixed As Global Politics Eyed, USD Keeps Risk-Off Bid
It was a rather directionless start to the week overall for Asia Pacific equity. German and Brazilian politics were to the fore, with established orders pressured in both
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Malaysian Ringgit, Emerging Markets at Risk to China PMI, USD Gain
The Malaysian Ringgit may be at risk to the 2019 government budget as emerging markets are vulnerable to weaker Chinese Manufacturing PMI. More declines in stocks may send USD higher.
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Brazilian Real Gains On Bolsaro Win, Huge Challenges Ahead
The victory of far-right candidate Jair Bolsonaro in Brazil’s Presidential vote was widely expected and the Real has gained only modestly since
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Crude Oil Price Chart Hints at Major Bearish Trend Reversal
Crude oil prices appear to have established a major top having broken a 16-month uptrend. Gold prices may fall if US PCE inflation data tops forecasts.
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AUD May Fall with Nikkei, Euro at Risk. Markets Eye Brazil Election
Emerging markets and USD/BRL eye the Brazilian election results as Euro prices are vulnerable after the S&P Italian outlook downgrade. AUD may fall as Asia stocks follow S&P 500 lower.
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Weekly Fundamental Forecast: Risk Aversion Threatens to Define October with Capital and FX Markets on Edge
A notable sense of fear spread through the financial system this past week. Where concern could be attributed to certain asset classes or a fleeting swoon previously, there was little denying the storm brewing through Friday. Now, as stability hangs in the balance, the masses are recognizing the long list of threats we have accumulated these past months.
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Weekly Technical Forecast: Equities Suffer Key Technical Breaks, Dollar Uncertain of Its Role, Volatility Rising
Volatility was the technical hallmark of the past week. The US equity indices were undoubtedly offering up the most dramatic charts with critical breaks on fast-paced retreats. Yet, the implications of a systemic shift in conviction would not leave many corners of the market untouched.
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Global Equity Rout to Persist with eyes on BoE, Italy and Brexi
Another week of volatility as equity markets continue its descent. The deteriorating risk sentiment looks set to persist as defensive stocks continue to outperform cyclical stocks.
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Gold Weekly Technical Outlook: Breakout at Initial Resistance Targets
A four-week rally has gold testing a critical resistance zone into the monthly close. Here are the targets & invalidation levels that matter on the XAU/USD weekly chart.
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Euro Forecast: After ECB, Downside in Focus as Italian Issues Fester
A dovish tilt by President Mario Draghi at the October European Central Bank meeting pulled the rug on the Euro at the end of the week, paving the way for more downside ahead.
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Saturday, 27 October 2018
Japanese Yen Weekly Technical Outlook: Bull Trend Marches On
Heightened volatility in global bond and equity markets continues to prove beneficial for the Japanese Yen.
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EUR/USD Weekly Technical Outlook: Can the Euro Continue Friday’s Reversal?
Last week the euro sold off, breaking a few levels along the way before reversing from near sizable support; how far it can rally from here is in question, though.
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Gold Price Outlook Tied to Equity Performance, S&P500 Rebound
Gold has been the beneficiary of a highly volatile equity market this month and the trend could continue if equities fail to stabilize.
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US Dollar Aims Higher on Liquidity Appeal Amid Market Rout
The US Dollar looks likely to continue upward after hitting a 17-month high as its unrivaled liquidity continues to attract demand amid broad-based risk aversion.
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GBP: Brexit, Budget and the Bank of England
A busy week for Sterling traders ahead but the overall market trend will continue to be dominated by Brexit, and that may not be good news for an under-the-cosh British Pound
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