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