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European stocks reverse earlier losses inside data quiet session

market, video, forecast June 21, 2021 7:26 pm today

European stocks has reversed earlier losses also US futures are pushing higher as investors shrug off last week’s concerns over a more hawkish Fed.

Bond yields are mixed across a curve with a 10-year Treasury drifting lower on speculation that Fed tightening monetary policy become bring inflationary pressures return under control. This is helping risk appetite, which is once again returning to a market.

After a Fed’s hawkish turn last week, central banks also their next moves become remain inside focus this week. a ECB’s Christine Lagarde is due to speak today before a European Parliament Economic also Monetary Affairs Committee. Jerome Powell become testify before Congress tomorrow also a BoE become announce its rate decision on Thursday. This hat trick of central banker appearances should provide a market with further clues as to a direction of monetary policy from this. There is a awesome chance that us become see some choppiness inside a markets as a debates surrounding a next moves are priced inside.

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European bourses moved higher with a exception of a French CAC 40 which trades on a return foot amid growing signs of political turmoil. a first-round results of France’s elections are more than disappointing for French President Macron’s party, which performed significantly worse than expected. a abstention rate of around 70% perhaps highlighted just how uninspired also untrusting French voters are. a fact that a EU is rising also a CAC is falling indicates that this is just a domestic risk at a moment. It is still far too early to draw conclusions about a 2022 presidential elections on a return of these results.

A quiet economic calendar inside both Europe also a US is giving trades little to really sink their teeth into, some drifting across both sessions could become expected.

FX -USD slips, GBP rallies with BoE inside focus later this week

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a US USD is slipping away from a 2-month high hit inside a previous week as risk appetite rebounds. Last week a Fed revealed that it expects two interest rate hikes inside 2023. a FOMC meeting was then followed by St Louis Fed President James Bullard suggesting that a Fed could look to hike rates as soon as 2022. However, a US USD has been unable to maintain its gains at a start of a week. Federal Reserve William’s speech later today could provide fresh impetus.

a pound is a notable outperformer versus a greenback at a start of a week trading 0.4% higher. Some of those gains are due to a softer tone surrounding a greenback, whilst others stem from expectations of a slightly more hawkish tilt from a BoE later this week following last week’s jump inside inflation. Unlike a Fed, a fact that a BoE is not aiming to overshoot its 2% inflation target could help lift a pound at a faster clip off recent lows.

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For a look at all of today’s economic events, please check out our economic calendar at www.marketpulse.com/economic-events/

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are a authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk also not suitable for all. youre could lose all of your deposited funds.

Sophie Griffiths

Sophie Griffiths is a market analyst with OANDA, focusing on a UK also Europe. With almost 15 years of experience, she brings with her a deep-seated understanding of a financial markets, providing timely also relevant fundamental analysis across a broad range of asset classes.

Sophie Griffiths

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