Today's Highlights
Pence ♥'s NATO
More Brexit Votes
Europe Needs a Deal
Please note: All data, figures & graphs are valid as of February 20th. All trading carries risk. Only risk capital you're prepared to lose.
Market Overview
The world has been both comforted and creeped out by US Vice President Mike Pence's comments in Munich over the weekend. The top news item on the circuits right now is how Pence defied Russia and gave his full support to NATO.
This is comforting since both of the above policies were a huge question mark the markets wanted clarity on in the Trump administration. However, it is unsettling that the remarks came from the Vice President and not the horse's mouth.
The markets have been flip-flopping around a lot lately without any clear direction and it's starting to confuse traders.
The fact is, that after Trump's very long and confusing press conference on Friday, people just aren't sure what to think of things and many are hedging their bets.
Here, take this comment from @GoldenEight this morning with his outlook on the market.
Things could go up and could go down. The stocks have incredible momentum but the confidence is also exaggerated. Daiviet has a growing following in eToro and has an interesting strategy for these markets as you can see in his market update video.
How Many More Brexit Votes?
Well, here's a flow chart outlining the process of how a bill becomes law in the UK...
Theresa May was able to get the bill through the House of Commons pretty quickly and without hassle. Today, the House of Lords will debate and vote. At the moment, it seems that the Lords will not be as easy to please as the Commons were.
May is on a tight schedule to get this thing through by March. At the moment, we seem to be on track for a final vote from the House of Lords on March 7th, but any delay along the way could potentially upset this time-frame.
We expect heavy volatility on the Pound Sterling throughout the day as news of the outcomes break.
Also expected from the UK parliament today is a final decision on whether US President Donald Trump will be allowed to visit. So a very eventful day in London.
...but not as eventful as Brussels.
Euro-zone Debt Crisis (cont)
The top topic of the EU meetings today will be Greece's ongoing and seemingly never-ending debt crisis.
European politicians are eager to get a lid on this before it becomes an issue for debate in the fragile elections that are coming up in the Netherlands, France, and Germany.
At the moment we're looking at a Mexican Standoff.
The IMF refuses to get involved unless Germany writes off part of the debt.
Germany says that the IMF will participate, but doesn't feel that any debt should be forgiven.
Both Germany & the IMF want Greece to reform their pensions and tax plans, which is something they may be willing to do but not without a fight.
Though we hope to see some headway today, the next red-line isn't until July when Greece will need €6.3 Billion to pay off outstanding bonds. However, if they leave it until then, the issue is sure to have an overwhelming impact on the election cycle.
At the moment, the EURUSD is holding tight to support at 1.06. Further political trouble and bureaucracy on this issue could easily send it south. Clients in eToro are currently showing a 66% buy sentiment on this pair and are counting on a swift resolution.
Have an amazing week!!
Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.
Recommended Content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.