Money Flows before the start of European trade

New day, new week, and it's the end of the month. Typically, for this period, we expect closing positions and re-positioning by the big players, which of course will increase volatility. With regard to volatility, when Asia is the active side of trading, expect a low volatility, especially in the transition between trading sessions, because Japan will be resting for ten days. A core center will not work for a while, and the effect will be noticeable, especially if there is a shocking market situation like a flash crash.

With regard to Europe, trade will start slowly and sluggish, with indicative prices showing flat opening. Market participants will be actively looking to mark today's moves. The economic calendar is also "on leave" today, so we remain at the mercy of Brexit news and trade talks.

Steven Mnuchin and Lighthizer said the talks have begun again since Tuesday. As the two negotiations are already in the final phase. But they also stressed that there was still a lot of work to be done, whether we would have a deal or not and refused to say whether this would happen by the end of June.

In Europe, elections in Spain, as well as Scotland's intentions to replace the pound with another currency, are part of the plans to become independent. Today, we expect the US dollar to decline, for now the euro, the Australian, the kiwi and the pounds form their daily peaks against the dollar.

We are looking forward to a tension between the US and Iran and the situation around the Hormuz Pass, which is the narrowest point between the Persian Gulf and the Gulf of Oman. Iran is threatening to block the pass that could lead to a problem with oil exports not only for Iran, but also for Kuwait, Bahrain, Qatar, Saudi Arabia, the United Arab Emirates and Oman. This may not mean direct appreciation in oil prices, on the contrary. Obstruction of one or more oil supply logistics chains at current yield levels may make OPEC + rethink its current agreement and actually boost output again, led by Saudi Arabia as a countermeasure against the crisis and the United States. This will negatively affect the price of oil.

Read more:

• Risk off after the escalation in the Middle East, markets are recovering in a period of calm
• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response