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PBoC’s RRR cut fails to appease Chinese markets – TradeTheNews

FXStreet (Barcelona) - The TradeTheNews Team shares that Chinese equities saw only a modest rally on the PBoC RRR cut.

Key Quotes

“The muted response in China markets following the overnight 50bp RRR cut by the PBoC speaks to the extent to which this easing has been anticipated in the recent run-up.”

“Shanghai Composite opened up 2.4% but has entered its break up only 1%. In contrast, the rate cut in November sparked a 7% rally.”

“In notable local press, China Daily said the cut is unlikely to reverse property market correction, CICC remarked financials would be the main beneficiaries of earlier than expected RRR move, and a separate report called for a more proactive fiscal policy to accompany monetary stimulus.”

EUR/GBP cycles remain bearish – ElliottWave Forecast

Daud Bhatti of ElliottWave-Forecast, uses Elliott Wave analysis and comments that GBP/USD cycles remain bearish, expecting the pair to resume lower to carve new lows below 0.7402.
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Gold firms above USD 1270, awaits fresh incentives

Gold prices on Comex extended gains from the previous session and remained elevated, although in a tight range, as traders await fresh cues from the European session.
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