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Market outlook for 5 March 2018

The market switched its sentiment last week. Brent found fresh bids around 63.50 and retraced a portion of its recent losses after that. The benchmark pushed away from the 63.50 handle and recovered to the 64.50 resistance. We assume that the benchmark will remain around its recent highs today.

Buyers pushed the gold prices out of the red last week. The spot jumped to the 1320-1315 area first and extended its recovery towards 1325 afterwards. The precious metal may retreat to 1315 today.

The bearish scenario prevails in the market. Bears have the ball and are keeping the USD/JPY pair around the 105.50 handle. The USD/JPY pair may start retracing its losses amid profit taking after a long decline. Buyers could move the US dollar to the level 106.00.

The pound failed to build a recovery on Friday. Buyers were able to lift the sterling to the 1.3800 region where the buying momentum lost steam. We do not rule out another buyers’ attempt to reverse more losses and to move the major towards 1.3850. If that does not happen the pair may soften to 1.3730.

The euro returned to green on Friday. Buyers extended their rally towards the 1.2350 area where the upward momentum faded and the pair closed the week. The pair may pull back to the 1.2250 support area amid profit-taking.

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