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  1. #1
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    Default Current Market Sentiment

    Recently, the diminished probability of a Feds interest rate cut by the
    end of this year and replacing it by a probability of tightening has
    contained the current market sentiment pushing the gold lower as a found
    tool to curb inflation was not priced in the market and has become in the
    FEDs hand. In the same time the pace of monetary tightening in UK and EU
    is expected to be continued this year.


  2. #2
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    Default Re: Current Market Sentiment

    The central banks hike the interest rate for curbing inflation and this
    increase the currency yields and its attractiveness which can decrease the
    liquidity and curb investment to cool the economy for fighting inflation
    which can reduce the value of gold and its value as a hedge of inflation
    can keep the value of the wealth.

    It is important to wait the recent MPC meeting minutes this week as it can
    show us the degree of inflation worries in UK and how far we are close to
    another tightening. It is widely expected to be hawkish which can underpin
    the pound this week till the release of the minutes.


  3. #3
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    Default Re: Current Market Sentiment

    In this same time and after last week US failure to announce china as a
    currency manipulating country, the greenback could found further rooms to
    appreciate versus the yen supported by the clear gradual pace of
    tightening in Japan which curbs the yen appreciation making it the first
    carry trade currency currently as its interest rate outlook looks
    relatively weak currently comparing with its EU and US counterparts not
    just the current .5%.

    Best wishes

    FX Consultant

    http://www.fx-recommends.com

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