Euro, Yen and GBP Primed Ahead of Heavy Economic Calendar...

Talking Points: – September has already been a busy month, and we are far from over as the final week contains a slew of high-impact data releases and Central Banker speeches. – Additional political volatility crept-in over the weekend, but at this early stage has yet to bring a significant bearing to financial markets. Below, we look at three major markets that each see significant data items of interest this week. – Want to see how Euro, GBP, and USD have held up to the DailyFX Q3 Forecasts? Click here for full access. To receive James Stanley’s Analysis directly via email, please sign up here. Global Political Volatility Isn’t Yet Over This weekend saw a couple of surprises on the political front in both Europe and Asia. In Europe, German elections were held on Sunday and as many expected, Germany Chancellor Angela Merkel won re-election. But what wasn’t expected was the strong showing by Populist Party, AfD, or Alternative for Deutschland. The AfD party took 94 of 709 available seats with a close to 13% vote nationwide,Article source:...

Brexit Briefing: GBP/USD Well Placed to Gain as Brussels Talks Proceed...

Talking Points – The British Pound is well placed to make further gains once the current sideways trend ends. – Little is expected from the fourth round of Brexit talks so any disappointment will likely be limited. Check out our Trading Guides: they’re free and have been updated,with several new ones now available including Forex for Beginners, Building Confidence and Traits of Successful Traders As the fourth round of Brexit talks between the UK and the EU resume in Brussels this week, GBPUSD continues to consolidate after its recent gains. However, hopes of progress in the negotiations are so low that another leg higher is increasingly possible. As I wrote here at the weekend, the pair is likely to continue to take a breather near-term. However, the next move could well be upwards. Large speculators’ net-short position in the British pound has been reduced by a record amount, according to the latest Commitments of Traders report by the US CFTC. Moreover, IG Client Sentiment data are currently sending out a bullish signal for the GBPUSD pair. In a further sign that traders are becoming more bullishArticle source:...

Oil Prices Eye May High; Inverse Head-and-Shoulders Formation Unfolds...

Talking Points: – Crude Oil Prices Eye May-High ($51.97); Inverse Head-and-Shoulders Formation Unfolds. – EUR/USD Pares Losses as ECB President Draghi Endorses Policy Re-Calibration in 2017. – Sign Up for the DailyFX Trading Webinars for an opportunity to discuss potential trade setups. Crude oil prices remain bid, with USOIL quickly approaching the May-high ($51.97) as the Organization of the Petroleum Exporting Countries (OPEC) curb production and keep the door open to further reduce supply. United Arab Emirates Energy Minister Suhail Al-Mazroueiannounced the region is now 100% complaint with the OPEC after reducing oil exports by as much as 10% in last two-months, and went onto say that the group may take additional steps at the next meeting on November 30 as Russia appears to be open to carry the rebalancing efforts beyond March 2018. At the same time, Iran Oil Minister Bijan Namdar Zanganeh argued ‘OPEC’s actions are working and compliance is acceptable overall, although there needs to be some change’ as Libya and Nigeria are exempt from the current measures, and the group may implementArticle source:...

Australian Dollar Looks Set To Hang On At The Heights...

Fundamental Australian Dollar Forecast: Neutral The Australian Dollar is clearly well supported near its highs The generally stronger US Dollar tone has not so far made much difference This week offers no obvious traps, but no clear upward markets either Just getting started in the AUD/USD trading world? Our beginners’ guide is here to help The Australian Dollar remains confined to a quite narrow band against its US cousin and, on a fundamental view, there seems precious little chance of that band breaking anytime soon. Investors have had ample time to digest the US Federal Reserve’s September monetary policy decision, Although it seems to have led to some general US Dollar strength, AUD/USD remains quite close to its highs for 2017 (that was the US$0.8117 hit on September 8). The US central bank’s base case remains that there’ll be four, quarter-point interest rate rises between now and the end of 2018- even if the market still sees rather fewer. The Australian currency retains a slim yield advantage overArticle source:...

NZD/USD Bid Ahead of Election- Outlook Hinges on RBNZ Policy...

Fundamental Forecast for New Zealand Dollar: Neutral The New Zealand dollar remains bid ahead of the election as opinion polls show Prime Minister Bill English as the favored candidate, but fresh remarks from the Reserve Bank of New Zealand (RBNZ) may sway the near-term outlook for NZD/USD as the central bank appears to be on course to preserve the record-low cash rate throughout 2017. Sign Up and Join the DailyFX Team LIVE for an Opportunity to Discuss Potential Trade Setups Despite the change in leadership, Deputy Governor Grant Spencer may strike a similar tone as his predecessor, Graeme Wheeler, as ‘numerous uncertainties remain and policy may need to adjust accordingly.’ As a result, the, the RBNZ is widely expected to retain the current policy at the September 28 meeting and the central bank may merely attempt to buy more time as ‘GDP in the March quarter was lower than expected, adding to the softening in growth observed at the end of 2016.’ It seems as thoughArticle source:...

Gold Prices Plunge as Fed Embarks on QT- Support Targets in View...

Fundamental Forecast for Gold:Neutral Gold losses accelerate as Fed signals December hike- technical support lower down What’s driving gold prices? Review DailyFX’s 3Q Gold Projections Join Michael for Live Weekly Strategy Webinars on Mondays at 12:30GMT Gold prices fell for the second consecutive week with the precious metal down more than 2.1% to trade at 1295 ahead of the New York close on Friday. The losses come on the back of FOMC interest rate decision where Chair Yellen Co reaffirmed expectations for another rate hike in 2017 and announced the commencement of the balance sheet offload (quantitative tightening) starting next month. While the prospects for higher rates are likely to weigh on bullion prices, rising geopolitical tensions may limit the magnitude of the decline. The Federal Reserve released its 4th quarter projections this week and although the committee did upwardly revised their year-end GDP forecast to 2.4%, they lowered inflation expectations with Core PCE (Personal Consumption Expenditure) revised lower to justArticle source:...