Oil continues to track higher as the bulls remain in control. Although yesterdays candle showed the bulls tested, they ultimately fought back into the close and the recovery looks set to continue. A rebound off $51.20 means that a near term uptrend is into its eighth day now and means that the bulls continue to look towards a test of the $52.85 key September high.
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The main risk event for Sterling this morning will be the UK employment report, which will be closely watched for any signs of Brexit having a negative impact on wage growth. While Britains unemployment rate is currently at a 42-year low, subdued wage growth continues to weigh on sentiment and is a headache for BoE policymakers.
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The idea that Brexit must mean a weaker European investment management sector should be "rejected", and the UK must make open markets work effectively after it leaves the bloc in 2019, Financial Conduct Authority Chief Executive Andrew Bailey said late Tuesday.
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The dollar hit its highest in about two weeks versus the yen on Thursday, supported by this week's rise in U.S. bond yields, with the near-term focus on U.S. President Donald Trump's decision on the next chair of the Federal Reserve.
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Thus there is speculation that the Fed may start raising interest rates at a faster pace, if Taylor becomes the Fed chief.
The euro edged up 0.2 percent to $1.1810 . One focus for the euro is the European Central Bank's policy meeting coming up next week.
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China is expected on Thursday to post a modest slowdown in third quarter economic growth from the previous quarter as the government's efforts to rein in the property market and debt risks weigh on activity in the world's second-largest economy.


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