Market News

The ECB annual forum began with the idea that the Euro has increased the economic convergence in Europe, a very polemic insight that goes against the current academic consensus.

The realization that the next Prime Minister might be Boris Johnson has sent FX markets into panic mode and earlier pushed the Pound to a 5-month trough versus the Euro.

After a choppy trading day on Monday, Asian benchmarks were mostly higher on Tuesday as traders approached the two-day Federal Reserve policy meeting with subdued optimism.

The Pound continues to be weighed by expectations that the next Prime Minister is likely to be Boris Johnson, which will mean that any possibility of a soft Brexit is dwindling.

ECB executive board member Benoît Cœuré, also a very solid contender to succeed the current ECB president Mario Draghi, said that the markets are sending "bleak" signals that are contradicting positive economic data.

The Federal Reserve will be holding its June policy meeting on Tuesday and Wednesday, after which it will announce its policy decision- but traders are already eager for the results, and are trading cautiously.

This week is likely to see more market activity than last week, with important central bank input due concerning the U.S. Dollar, the Japanese Yen, and the British Pound.

The US Dollar Index steadied during Asian trade and is poised to show a gain for the week.

As the voting begins today for a new Prime Minister, FX traders are sitting on the sidelines wary of the prospect that the next PM could take the UK out of the European Union without an agreement in place.

European Union ministers are meeting on Thursday night in Luxembourg in order to approve some Eurozone reforms, however, they may struggle to reach a consensus since there are many interests at stake, with many parties involved.

U.S. President Donald Trump announced on Wednesday that he is mulling over the possibility of sanctioning the Nord Stream 2 pipeline

Attempts in the UK Parliament to block a “no-deal Brexit” have helped to lift the Pound higher against the US Dollar and the Euro.

The European Central bank (ECB) President Mario Draghi is expected to give the opening speech at ECB conference on CESEE in Frankfurt later today.

Oil prices took a sharp turn downward on Wednesday even after it was announced that OPEC ministers are working diligently to extend their production cuts, a move that was made to keep prices stable in the face of record U.S. production.

While aiming to raise the sales tax in October, the Japanese are willing to change their policy if the economic conditions get worse according to sources.