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September 8, 2014 – Trading Tips & Trends – Currency Pairs News

Last week the EUR/USD pair rapidly decreased and dipped to a new one-year low. As the pair declined it touched 1.2920 due to surprising actions from the European Central Bank. As has previously been discussed, many analysts expected Mario Draghi to increase monetary stimulus to prevent low inflation and spur economic growth. Nobody, however, expected the ECB to cut the already very low interest rates. The pair then ranged low before the U.S. labor data was released, which came out worse-than-expected. The price remained below 1.3000. On Thursday pay attention to the ECB Monthly Bulletin and on Friday to the U.S. Retail Sales data.

Last week the GBP/USD erased more than 300 pips when it decreased from 1.6630 to 1.6280. The British pound was influenced by not only the European Central Bank’s decision but even more so by fears regarding the upcoming referendum. On September 18th it will be decided if Scotland will get its independency. For the first time in modern history, it seems very likely that they might split from the U.K. On the back of these speculations, the GBP/USD will continue to fall. Now the pair is traded at 1.6180. This week there will be some important releases (e.g. the U.K Manufacturing Production on Tuesday and Inflation hearing on Wednesday) but the pair will be under pressure even if the data comes out above expectation.

The price of gold started last week at $1,287.5/ounce and then fell to $1,257/ounce. The yellow metal lost the safe-haven demand as Russia and Ukraine agreed on a ceasefire. This, coupled with a better outlook of the U.S. economy, caused the price to immediately decline. However, on Friday the price slightly recovered after the U.S. Nonfarm payrolls showed very disappointing numbers. This week keep an eye on geopolitical tension and to the U.S. Retail Sales release.

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