Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Central Banks Dominate The Week

Published 06/20/2019, 03:04 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
-
GBP/USD
-
GBP/EUR
-

Yesterday was a choppy day for dollar pairs as Trump and Xi confirmed that a phone call took place and that they would (all being well) be meeting at the Japanese G20 summit. The dollar remained net positive throughout the afternoon but it is still headline driven by the media and a breakdown in the relationship between the US and China will result in further fear.

Mario Draghi’s future hint of economic easing sent the euro crashing lower as they reveal more fiscal and monetary policy changes are on the horizon. ECB officials are basing these action points off several “alarming” market signs, including the distant eurozone inflation targets which still look like a pipe-dream, alongside Brexit and trade-related pressures on economic growth for H2.

The FED will be under the microscope this evening as it could be their turn to take centre stage and reveal their dovish outlook for the next year and beyond for the US economy. Every piece of economic research and market news has focused their attention on this prospective 75 basis point which is a direct contradiction to the last 24 months of bullishness. Trade war uncertainty, manufacturing numbers close to a recession, failing to hit their inflation targets, alongside Donald Trump directly telling the world via Twitter that the Fed raising rates would be “madness” will all be challenged this evening.

UK inflation is due out at 09:30 where the consensus expects a further decline from 1.8% to 1.7%. GBP/EUR is still desperately fighting the euro for the ground at the 1.12 level and GBP/USD found some mild support at 1.2500. Politics is still a key driver for sentiment but there isn’t much to inspire markets at the moment.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.