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Currencies

Pair near strong weekly resistance

EUR/USD pair has been rallying extensively over the past few weeks, and even the aggressive comeback by US dollar didn’t seem to reflect much in this pair as it did in other currency pairs. However, that seems to be in corrected in the week ahead, as the pair is in close ranges to a 2008 trend line resistance. On the US front, the US economy added 200K jobs in January and more importantly, saw wages rise by 2.9% y/y, in what seems like a more sustainable acceleration in pay. This sent the dollar higher after a week that saw it struggling to recover. On the week ahead, we have US ISM Manufacturing PMI, which stood at the levels of 55.9 in December. A rise to 56.5 is expected, which if reached will indicate string economy and growth, which could burden EUR/USD.

According to a new report, issued ahead of Arabian Travel Market 2018, recent reforms in Saudi Arabia – not to mention widespread investment in the Kingdom’s burgeoning tourism industry – will drive growth in the hospitality market of 13.5% compound annual growth rate (CAGR), higher than the established markets of the UAE (10.1%) and Oman (11.8%).

The global market has been spooked by recent developments in the US where rising wage pressure at a time of low unemployment and tax cuts is raising concern. The S&P 500 entered into correction territory after falling 10%  from its January 26 high, and with bonds also falling, commodities suffered another week of sharp losses.

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