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GBP/USD WEEKLY OVERVIEW

Dilemma of BREXIT affected Pound badly and it hits sharp decline this week. On Monday Pound slipped to a Technical seven week low against the US $ as market reacted on first day of the week-Monday.as $1,2259. Data reflects political uncertainty on Britain’s economy as British Prime Minister suffered a defeat in Parliament on her Brexit plan. Position has become more worsen as another possible fresh Scottish Independence referendum may be expected in March 2017 if Britain opt to leave European Union. However GBP-USD witnessed abnormal selling pressure on daily charts. Pound faced more than 2% fall against US dollar due to US currency strength coupled with the expectation of hike in interest rates by central bank of US in March 2017 provided jobs and inflation data holdup. However, in te context of slow consumers spending data of UK, rising inflation, and fall in Pound of around fifth against US dollar it is expected Pound will slip further. To avoid this situation immediate strict fiscal tightening measures are needed. On Wednesday Pound fell to 1,2160 its lowest since January 17, 2017. On the other hand US dollar rose to its highest level in 5 days on Wednesday as US private sector added 298000 jobs last month against 190000 as predicted earlier this pushed the dollar to upward trend since March 3rd against all leading currencies.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (GBP/USD)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
1.1878
1.2040
1.2103
1.2202
1.2265
1.2363
1.2525
GBP/USD
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
1.22859
1.22998
1.21382
1.21669
0.96%
EUR/USD WEEKLY OVERVIEW

As clouds of uncertainty relating to Brexit still showing their edge and upcoming elections in major countries of Europe dragged Euro downward whereas dollar rose against Euro on Monday. The euro 0.2 % lower to $ 1,0597, down from a two week high later euro fell 0.35 % to $ 1.0584 following statement of former Prime Minister of France for not taking part in coming Presidential election in France.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (EUR/USD)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
1.0363
1.0478
1.0547
1.0593
1.0662
1.0708
1.0824
EUR/USD
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
1.06088
1.06394
1.05243
1.06162
0.069%
USD/JPY WEEKLY OVERVIEW

Dollar rises against Japanese Yen 0.7% to 114.74 Yen, its highest against Yen since March 3rd, after US President Trump first major policy address. It is expected the policy plan will boost up inflation and growth rate. The US $ hit a seven- week high on Wednesday with huge expectation of hike in US interest rates in near future by US central bank. Now the dollar has strengthened due to expectation of hike in interest rates by central bank and new tax reforms by Donald Trump administration.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (USD/JPY)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
111.8650
113.2410
114.3060
114.6170
115.6820
115.9930
117.3690
USD/JPY
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
113.909
114.928
113.552
115.371
1.28%

 

GOLD WEEKLY OVERVIEW

News of expected rise in US interest rates by Central Bank of US resulted fall in Gold prices upto two weeks low but on Monday it took breath and steadied. Spot gold was at $1,231.1 an ounce whereas US gold futures were up 0.5% at 1,231. The upcoming higher interest rates, very positive jobs data from US labour market, investment figures showing uptrend, consumers confidence, housing and equity valuation reports are continuously showing positivity. These factors are influencing for stronger US $ as a result dollar priced commodities will become more expensive for holders of other currencies. On the other hand two factors are supporting Gold to steadied its price 1. Recently North Korea has fired four ballistic missiles near Japan north west coast and created war fever tension in the area. Moreover, clouds of uncertainty could not disperse due to upcoming elections in major countries of Europe naturally Gold will get support from the situation against Dollar. However Gold price hit a five week low on Wednesday as dollar gather strength whereas spot Gold was down 0.57% to $ 1,208.41 per ounce.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (GOLD)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
1145.2233
1178.8233
1188.1567
1212.4233
1221.7567
1246.0233
1.2676
USD/JPY
OPEN
HIGH
LOW
CLOSE
CHANGE
WEEKLY
1233.13
1236.69
1203.09
1197.49
2.89%
OIL WEEKLY OVERVIEW

Oil prices witnessed sudden up and down trend due to substantial growth in US shale Oil production which aims grow 1.4 millions barrel per day by 2022. On the other hand demand for oil seems less in European markets where as OPEC are likely to extend their production cut till end of 2017. Hence Brent crude fell 10 cents a barrel to 55.80 on Tuesday. On Wednesday Oil prices slip 5% to their lowest level this year as US crude stocks production hit a new record high. On Friday Oil prices fell 3% US crude prices fell $50 a barrel whereas Brent crude fell $ 1.46 a barrel to $ 51.65.

TECHNICAL STUDY USING LUTFI MAGNET THEORY (Oil)
TIME
S3
S2
S1
MAGNET POINT
R1
R2
R3
WEEKLY
43.5000
48.5300
50.5100
53.5600
55.5400
58.5900
63.6200
ISMAR Financial – MUJEEB UR REHMAN KHAN – Director, Corporate Affairs

DISCLAIMER: This report has been prepared by ISMAR financial. The information and opinions contained herein have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified and no guaranty, representation or warranty, express or implied is made as to its accuracy, completeness or correctness. This document is only for Reading information.

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