A very political week


  • Overview : Elections time
  • The week in the US : Minutes of stability
  • The week in the Euro zone : Cloudy spell

On Sunday, Europe votes. Beyond a record low turnout, polls suggest strong gains by Eurosceptic parties. Drawn from either end of the political spectrum and with no common policies, their MEPs stand little chance of forming a parliamentary grouping. As a result the Parliament will continue to be dominated by the two traditional major groups. Thus the risk of institutional log-jams or interference with national policies is limited. This does not change the fac that, seen from the Americas or Asia, Europe will look weaker after 25 May, whilst inside the Parliament, political manoeuvring will become more complex. The already sluggish legislative process will certainly not get any quicker.

On the same day, Ukraine will go to the polls too. After six months of crisis, which has brought the company to the edge of an implosion, voters will have the opportunity to choose a president. Petro Porochenko, who is experienced and has a reputation as a moderate, is ahead in the polls. A pro-European, he will also enjoy the support of the west. But even with a large majority, his ability to restore order will be limited. The situation will therefore remain difficult. In the eyes of ECB President, Mario Draghi, it threatens the recovery.

Recommended Content


Recommended Content

Editors’ Picks

USD/JPY flat-lines below 151.50 after soft Japanese CPI data

USD/JPY flat-lines below 151.50 after soft Japanese CPI data

USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited. 

USD/JPY News

AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull

AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull

AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data. 

AUD/USD News

Gold flirts with record highs above $2,230, all eyes on US PCE data

Gold flirts with record highs above $2,230, all eyes on US PCE data

Gold price flirts with record highs around $2,230 during the Asian session on Friday. The uptick of yellow metal is bolstered by the safe-haven flows amidst growing economic concerns and the prospect of interest rate cuts from the US Federal Reserve.

Gold News

Optimism price could fall as nearly $90 million worth of OP tokens is due flood markets

Optimism price could fall as nearly $90 million worth of OP tokens is due flood markets

Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.

Read more

Will they won’t they cut rates is the question of Q2?

Will they won’t they cut rates is the question of Q2?

There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.

Read more

Majors

Cryptocurrencies

Signatures