“In European trading, all eyes are on the SNB and BOE.”

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Today, major currencies have demonstrated minimal interest, while the dollar experienced some softness in yesterday’s trading. This occurred amidst the continued decline of equities and the retreat of bond yields during the US session.

Throughout this week, a recurring idea has emerged that implies a potential shift in investment strategy towards taking risks. This trend could be linked to the end of the month and quarter, which usually results in funds being moved from the stock market to the bond market. The S&P 500 has experienced a decline of 1% this week, and its losing streak has persisted for three days starting from last Friday.

At present, stocks are uncertain and hesitant as investors remain cautious. If the Bank of England unexpectedly raises interest rates by 50 basis points, it may cause more anxiety in the markets, particularly the UK FTSE. This will be the main issue of concern during the upcoming session, along with predictions that the SNB will increase interest rates by 25 bps.

At 6:45 AM GMT, France will release their business confidence report for June. At 7:30 AM GMT, the Swiss National Bank will announce their monetary policy decision for June, and at 11:00 AM GMT, the Bank of England will release their monetary policy decision for the same month.

The session ahead has come to an end. I hope that you have great days ahead and success in your trading. Be cautious and stay safe.

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