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United Arab Bank is pleased to announce the successful completion of its capital increase, which ended on March 7, 2018, to increase the Bank's capital for an amountof AED 687.5 million to add on the Bank's issued capital of AED 1.375 billion.  The Rights Issue will be in the form of 687,516,883 newly issued Shares, with new shares priced at AED 1 per share, and which would increase the Bank's issued share capital to AED 2.063 billion.

The Bloomberg Commodity Index traded lower for a third consecutive week with major commodities such as crude oil, gold, and copper stuck within relatively narrow ranges. Market jitters ahead of a near-certain sixth US rate hike (in this current cycle) on March 21, together with multiple geopolitical risks and political uncertainty in Washington, have sapped investor demand.

Currencies

Pair finds support at 1.2250 levels

The EURUSD ended the week back near the lows of its range as the dollar gained in strength slowly and steadily after a rough week. In the beginning of the week, dull growth in the average wages weighed heavily on the greenback. Currently, anticipation of the FOMC meeting this week is helping give a boost to the dollar and pushing the pair to end the week near the 1.2250 level supports. However, looking ahead dollar bulls aren’t out of the woods yet. The expectation of a bullish dollar and strong incoming data has been built up so much over the last few weeks that even that data which comes in as expected during this period has been viewed as a failure and a blow to future rate hikes from the Fed. Given the current prices, we expect to see buyers jump into this market, providing upward bias to the pair.

Currencies

Dollar under pressure

Last week was dominated by geopolitical events rather than by economic data. The Fed hiked rates as expected which was already priced into the markets. Powell restated the strength in the US economy and expressed the hope that it would continue but stopped short of laying out a timeline for the future rate hikes. Then came the news that the US administration had imposed almost $60 billion worth tariffs on many of the Chinese goods and China retaliated as well. The Eurozone leaders were also seen joining in and this led to a lot of risk and fear that it would lead to a global trade war in a slow and steady manner. Looking ahead to the next week, it would be the last week of the month and hence the amount of economic news and data would be less. Also, the market has enough geopolitical news to deal with and this is likely to bring in a lot of volatility in the markets. The pair would continue to consolidate within the range but with the threat of the topside break looking hefty. Despite high resistance by way of the 2008 trend-line, the bull-flag scenario is looking increasingly like it will come to fruition.

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