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Daily Market Review – 26/05/16

The EUR The EUR The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More and GBP The GBP The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More gained against the USD The USD The USD is the official currency of the United States of America. It is the largest reserve currency... More is the official currency of the United States of America. It is the largest reserve currency... More on Wednesday. The Single Currency The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More managed to reverse off of strong short-term support When investors and traders use the term support When investors and traders use the term support When investors and traders use the term support, or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More levels and put in a positive day of trading. The German Ifo Business Climate turned in a better reading and the broad European outcome was also good. Thus far this morning, the EUR has been under a bit of pressure again, but there is a long day of trading ahead.

The EUR has been getting battered for a while when looking at a long-term chart and a lot of this has been based on E.U. economic conditions which have been suffering from stagnation The term stagnation The term stagnation The term stagnation in economics means a period of time in which an economy is achieving little grow... More in economics means a period of time in which an economy is achieving little grow... More in economics means a period of time in which an economy is achieving little grow... More and questionable policy.  However, the EUR might be considered to be undervalued by some investors and traders may seek to continue to test short-term trends with the belief that not all is doom and gloom.

The GBP has done well all week after being taken lower as last Friday ended. Sterling The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More continues to find takers and today the U.K. will publish its Second Estimate GDP outcome. The results could certainly be a factor for the GBP. Many investors might be speculating that the U.K. is going to vote to remain in the Brexit also.

Services PMI numbers from the U.S. yesterday were disappointing and this continues to show that the economy in the States is questionable. While it is clear that the Federal Reserve The Federal Reserve The Federal Reserve The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More ... More is the Central Bank of the United States of America and sets the monetary policy... More is the Central Bank of the United States of America and sets the monetary policy... More would like to increase interest rates, economic activity has not been great and it is questionable if it has even been good. Wall Street turned in gains on Wednesday, but they were not as strong as the previous session. Investors are certainly still nervous regarding corporate profits and it remains to be seen if this rally can be sustained.  The U.S. will present Core Durable Goods Orders, weekly Unemployment Claims, and Pending Home Sales figures today. Tomorrow the States will release Preliminary GDP statistics. All of the mentioned data will certainly create a stir, if the data is negative it may make the USD weaker.

Crude Oil got stronger yesterday. The Inventories report on storage from the United States showed a drop yesterday. Crude Oil has done remarkably well the past month and been able to hold onto its gains and move higher. The question many are asking is when the show will end. If Crude Oil is going higher on speculation from traders alone it will find a difficult time to climb higher consistently, but it is always foolish to stand in front of a train when it is moving. Meaning traders may be tempted to sell Crude Oil on the notion it must decline, but they should practice good risk management when engaging in the opportunity.

EUR/USD chart this morning approximately 6:45, GMT, 26 May 2016

EUR/USD chart this morning approximately 6:45, GMT, 26 May 2016