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The Euro Melts Lower Amid Rising Yields and Sinking Equities. Can EUR/USD Hold?

THE EURO, US DOLLAR, EUR/USD, NIKKEI 225, STAGFLATION - TALKING POINTS: The Euro languishes as energy prices raise concerns. APAC equities went lower as yields continue to rise. Stagflation threatens global recovery. Where will EUR/USD go? The Euro continued to threaten lower levels today as equity market routs continued on from the US lead. APAC shares went lower, except for a couple of Chinese indices buoyed as the PBOC added liquidity for the ninth day in a row.

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WTI, Brent Looking to Extend Gains as Supply Crunch Sees Oil Surge

KEY TALKING POINTS: Oil demand picks up as economies recover from the pandemic shutdowns. Power crunch in China unsettling oil traders.   Brent crude has dipped this morning after a 5-day rally ran out of steam after hitting a 3-year high just shy of $80 a barrel. It’s likely that profit-taking is behind yesterday’s rejection after a good rally but we may have some stagnation around this level as investors weigh up where to go next. The run-up in prices is leading on

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Trading Up - A must-watch live event for traders and investors.

Dear IG Community, We are pleased to invite you to join us at 5:30pm AEDT (8.30am UK Time) on Tuesday 12th of October for Trading Up - a live virtual event designed to make you a better, more informed trader. Learn everything from global macro themes and FX to trading psychology from the industry’s best. Plus, global keynotes from legendary traders. You won’t want to miss out. Register here for FREE: https://www.bigmarker.com/ausbiz/TRADING-UP-Live-Virtual-Event jt2XYluNX8MZf8bH.mp4 Th

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Brent Crude Oil Soars to a Three Year High on Supply-Demand Mis-Match

Brent Crude Oil Price, Chart, and Analysis Brent crude rallies on increased global demand. Natural gas prices hits a multi-year record high. Keep up to date with all market-moving data releases and events by using the DailyFX Calendar The price of Brent crude oil continues to soar, touching highs last seen three years ago as demand outstrips supply. The continued rollback of covid-19 restrictions in economies around the globe is driving demand ever higher with supply

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GBP/USD Forecast: GBP Breakdown Risks Heightened on US Dollar Charge

GBP/USD Analysis and News GBP/USD on the Backfoot. UK OIS Markets Price In Aggressive BoE Tightening. Room for Disappointment. UK Data to Slow Down. GBP/USD on the Backfoot A modest pullback in the Pound this morning, breaking back below the 1.3700 handle. Reminder that today is corporate month end (two days before actual month end), which typically coincides with USD stength throughout the session. Addtionally, the sizeable pick up in US yields with the 10Y on

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US Dollar Technical Outlook: Nearing an Important Test

USD TECHNICAL OUTLOOK: DXY trading towards important resistance test. A sustained breakout is possible, but conviction lacks. Price action may continue to contract through the rest of the year.   US DOLLAR TECHNICAL OUTLOOK: NEARING AN IMPORTANT TEST The US Dollar Index (DXY) is trending higher and on the verge of testing an important set of resistance levels as we head towards the final frame of the year. The August high at 93.72 and top-side trend-line r

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German Election Latest: EUR/USD Muted Following Election Results

EUR/USD Analysis & News SPD Wins Majority of Votes The Greens & FDP to Decide Between Traffic Light or Jamaica Coalition Euro Sees Muted Impact After Election Sees Status Quo Maintained German Election Shows Victory for Centre-Left The results: According to preliminary results, the SPD led by Olaf Scholz won the largest share of votes with 25.7% (+5.2ppts). The main opposition, the CDU/CSU were runners up with 24.1% (-8.9ppts), marking a poor night for

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British Pound (GBP) Forecast: GBP/USD Weighing Up Different Fundamental Drivers

GBP/USD Price, Chart, and Analysis Fuel shortages across the country need to be rectified immediately. BoE and Fed speakers will help steer GBP/USD this week.   The UK government is to suspend competition laws between oil firms to help get fuel to the parts of the country suffering most from the petrol shortage. Over the weekend long lines of traffic blocked UK roads as drivers queued to buy petrol before forecourts ran out of fuel, sparking fears that the supply chai

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The Week Ahead On The Markets

The Week Ahead Read about upcoming market-moving events and plan your trading week                                                                        Week commencing 27 September

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Dividend Adjustments 27th September 2021 - 4th October 2021

Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 27th September 2021. These are projected dividends and likely to change. IG cannot be held responsible for any changes made. Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted

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US Dollar Outlook Bullish on Future US-China Tension

The US Dollar may catch a haven bid as US-China tensions gradually escalate amid widening disagreements on foreign policy. Political volatility may dampen risk appetite and put a premium on liquidity. Issues over trade, the South China Sea and Taiwan remain the biggest sticking points, with the latter drawing more attention following America’s pullout of Afghanistan. Sino-US tensions were expected to remain high even after former President Donald Trump left office. This is in part due to th

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GBP/USD Flattens After BOE-Induced Rally

GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt, but the hawkish tone from the Bank of England sparked some optimism into the Pound pushing GBP/USD above recent resistance at 1.3720, with Dave Ramsden and Michael Saunders, two of the Monetary Policy Committee (MPC) members, voting for an early end to the pandemic stimulus. GBP/USD Da

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US Dollar Extends Decline as US PMIs Slip

US Dollar Analysis & News Markit PMI Misses Expectations USD Back Down to Pre-FOMC Levels Markit PMI Misses Expectations US Markit Composite PMI for September fell to 54.5 from 55.4, whereby the services and manufacturing figures fell to 54.4 and 60.5 respectively, both missing analyst estimates. Supply chain issues and capacity shortages remain the key factors behind the slump, linked in part to the spread of the Delta variant. IHS Markit note that supply chain d

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Bank of England Reaction: GBP/USD Jumps on More Hawkish BoE

Bank of England Analysis and News BoE Leaves Policy Tools Unchanged as Expected Policymakers Vote 7-2 on Maintain Gilt Purchases, Ramsden Joins Saunders in Hawkish Dissent GBP Breaks Above 1.37 on More Hawkish Statement Bank of England left policy measures unchanged as expected with the Bank Rate remaining at 0.1% and gilt purchases at GBP 875bln. However, the vote split on gilt purchases saw Ramsden joining Saunders in calling for a cut to GBP 860bln. Alongside th

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FTSE 100 Price Outlook: Bank of England to Leave Advance in UK Stocks Intact

FTSE 100, BANK OF ENGLAND POLICY DECISION, NEWS AND ANALYSIS: The FTSE 100 index has been climbing for most of this week and the Bank of England’s monetary policy committee will likely consider it a job well done if London stocks and GBP are stable after its announcement today. A hawkish tilt cannot be ruled out but the Bank is more likely to focus on stability and avoiding a major market reaction.   BANK OF ENGLAND TO FOCUS ON STABILITY Torn two ways by an above

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British Pound Battles US Dollar After FOMC, Before BoE. Will GBP/USD Move Lower?

BRITISH POUND, US DOLLAR, GBP/USD, FOMC, BOE, EVERGRANDE - TALKING POINTS The British Pound was pushed to lows by the FOMC but rallied through Asia APAC equities were generally positive after Evergrande debt semi-resolution US Dollar strength tested after the Fed meeting. Will GBP/USD break-out?   The British Pound moved higher through the Asian session as the US Dollar had a mixed day in the aftermath of the FOMC meeting. The resolution of the Evergrande bond

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