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European natural gas prices experienced significant weakness yesterday, with TTF closing 3.7% lower, bringing prices back below EUR48/MWh, according to ING's commodity analysts Warren Patterson and Ewa Manthey.
Oil prices came under pressure yesterday with the market and the broader complex unable to escape the sell-off seen in equity markets, ING's FX analyst Francesco Pesole notes.
EUR fell due to news about universal tariffs. Treasury Secretary Scott Bessent supports a 2.5% tariff on US imports, while Trump wants higher tariffs. This could limit EUR gains. The EUR/USD pair was at 1.0428.
The White House announced that Colombia has agreed to accept all illegal migrants returned from the US, fulfilling President Trump's terms. In exchange, economic sanctions and tariffs will be put on hold, but visa sanctions and enhanced inspections will remain until deportations begin.
USD/CAD strengthens as momentum grows among Trump’s advisers to impose 25% tariffs on Canada, potentially starting February 1. The Canadian Dollar (CAD) also struggles as the Bank of Canada (BoC) is expected to implement another 25 basis points rate cut on Wednesday. Meanwhile, the US Dollar gains ground amid uncertainty surrounding the impact of President Trump's policies.
Germany’s Manufacturing PMI improved to 44.1 in January, beating the estimated 42, while the Services PMI rose to 52.5, exceeding the anticipated 51. As a result, EUR/USD has picked up fresh bids, approaching the 1.0500 level after the release of these upbeat German PMIs.
The Pound Sterling has posted a fresh two-week high above 1.2400 against the US Dollar after US President Trump supported immediate interest rate cuts from the Federal Reserve. Despite this, the Fed is widely anticipated to keep interest rates steady on Wednesday. Investors are now awaiting the preliminary UK/US PMI data for January for further insights.
NZD/USD surged to near 0.5700 after US President Trump signaled the possibility of reaching a deal with China. Trump's assumption of making a deal without imposing tariffs has reduced the risk-premium of the US Dollar. Meanwhile, the Federal Reserve is unlikely to be influenced by Trump's call for immediate rate cuts.
On Friday, gold prices attracted fresh buying interest and resumed their one-month-old uptrend. Concerns over a potential new wave of global trade wars boosted the appeal of the safe-haven commodity. Additionally, expectations for further Federal Reserve rate cuts weighed on the USD, providing additional support to the XAU/USD pair.