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Choppy sessions with little change characterised yesterday’s session and we’re set to get the same on today’s open with marginal gains as traders search for direction. Also keeping traders in a cautious mode will be key speeches from Mario Draghi, Mark Carney and Janet Yellen today. Previously it looked as though the BoE and Fed may diverge from the ECB, but growth in the US and UK hasn’t picked up any momentum so bulls will be on the hunt for some dovish comments to kick start another leg higher.
The US economic data was again a mixed bag yesterday. On one hand existing home sales fell 3.3% in April after a two year high in March, rather disappointing after we saw strong results in the housing sector lately. On the other hand, the index of leading economic indicators rose by most in 9 months. Amid all that, the Dow Jones edged higher, gaining 20 points to 18,292.5.
The ECB emphasized the importance of staying the course in its assessment of monetary policy meeting. The Governing Council thinks the euro area economy ‘gained momentum at the beginning of 2015’. However, the shared currency stopped for a breather, closing just marginally higher (7 pips) at 1.1114 versus the greenback.
Concerns regarding inventories reaching capacity began to look farfetched as crude stockpiles slumped for the third consecutive week. Wondering whether that is beginning to look like a trend, investors pushed the WTI prices $1.84 up to $60.66 a barrel. Gold prices lost $3.3 to $1207.00 yesterday as US unemployment benefits declined.
Ipek Ozkardeskaya is a Market Analyst at London Capital Group. She has strong technical background in quantitative finance. Previously, she worked as FX strategist in Swissquote Bank and as a client sales executive at HSBC Private Bank in Geneva. She also developed quantitative models in automatic trading as part of BCV’s Structured Products team. Ipek has a Master’s degree in Financial Engineering & Risk Management and a Bachelor degree in Economics from University of Lausanne.
Marius is a dealer at Capital Spreads. His involvement with CFDs and spread betting started in 2008 after graduating from London Metropolitan University with an MSc in Finance. He provides analysis of the forex, stock index and commodity markets, with a particular focus on oil and gold.
Jonathan is also a dealer at Capital Spreads. Having started his career in the City trading interest-rate and bond derivatives in 2005, he entered the spread betting and CFD industry in 2007 by joining the dealing desk at City Credit Capital. After successfully managing multiple-asset risk books across the European, US and Asian time zones through the height of the financial crisis, he joined Capital Spreads in 2010.
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