Unemployment rate falls to 43 year low - FX...>

FOREX: Unemployment rate falls to 43 year low

- FX markets witnessed a much calmer feel in Europe as TRY staged a rebound to

Try6.4165. This provided fresh risk appetite across the board with decent

recoveries seen in EM FX, further supporting the majors.

- GBPUSD holding firm ahead of UK jobs data spiked on release to $1.2827 after

ILO Unemployment fell more than expected to 43 year lows of 4.0%. However, a

sharp reversal to $1.2766 followed after pay growth slowed to 9-month lows.

- EURUSD printed $1.1429 but has since failed to hold $1.1400, suggesting the

downtrend remains intact. German GDP showed slight improvements, Final CPI

readings were inline.

- USDJPY comfortably holds above the 55-dma to trade either side of Y111.00.

EURJPY stalled ahead of Y127.00 and has since drifted to the Y126.40/45 area.

- As previously mentioned TRY sits top of the EM FX pile with gains of 5.30%

against the USD, followed closely behind by ZAR (+2.21%) and RUB (+1.46%).

- Gold's bearish breakout extends to 18-month lows of $1192.40, pressure remains

toward the downside with next support from the Jan27 2017 low at $1180.66.