While last week started with stock markets being shaken by the Evergrande situation which saw global indices dropping to multi-month lows, this week is starting with some upward moves after the SPD party secured a win in the German federal elections. Despite positive sentiment in markets, this was the most likely outcome and didnt come as much of a shock to investors who will be looking towards this week's central bankers for further indication of potential monetary policy changes. While the Euro continues to pull back, it will be important to see if today’s speeches will support the single market currency or if it will push past recent lows, a move which would see it drop to the lowest level since mid-August.
Central bankers in focus amid rising inflation concerns
While the immediate issue of Evergrande seems to have been temporarily resolved, the company was still unable to make coupon payments last week and uncertainty remains regarding the future of the Chinese developer whose troubles could cause a domino effect through global markets once again. This week there will be many central banker speeches, starting today with ECB president lagarde, which will be followed by several FED speakers and finally conclude with BoE governor Bailey. These will be closely followed by investors, especially after last week’s central bank decisions where most of them chose to remain patient despite increasing pressures to adjust their policy after recent data suggested a widespread rise in inflation and costs.
X-Trade Brokers Dom Maklerski S.A. does not take responsibility for investment decisions made under the influence of the information published on this website. None of the published information can be treated as a recommendation, disposition, promise, or guarantee that the investor will achieve a profit or will minimize risk using the information published on this website. Transactions including investment instruments, especially derivatives using leverage, are in its nature speculative and can provide both profits and losses that can exceed the initial deposit engaged by the investor.
Recommended Content
Editors’ Picks
EUR/USD comes under pressure near 1.0630
Further gains in the Greenback encourage sellers to maintain their control over the risk complex, forcing EUR/USD to retreat further and revisit the 1.0630 region as the US session draws to a close.
GBP/USD stays firm amid BoE, Fed commentary and US data
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.