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Money Flows before the start of European trading
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Loading...Mixed money flows before the start of European trading - the battle between risk factors and asset classes will again be a major and key factor today, with the UK's GDP being the most important news of the day.
After the recovery in the first quarter, the country's economy is expected to stagnate in Q2 as the effects of Brexit continue to accumulate and further compound the uncertainty. The hope is that at least the UK will avoid the negative growth here and not fall into a technical recession this year. The pound is at key levels, so good data here would be a correction to the long-term downtrend. Negative results will allow sellers to go through the support and send the pound down, with the next major zone coming in at a key $ 1.20.
Sentiment risk remains a major factor, with the PBOC fixing the yuan just above $ 7, further weakening the local currency - the uptrend is already present, with levels last week of around $ 6.90 - which suggests that we may soon see counter-actions by USA. Trump is currently arguing that if he pressures the Fed to cut interest rates, the dollars will win. Most likely he is wrong. The central bank will not return interest rates to 0% unless the economy is facing a major problem. And if that happens, it will have the opposite effect, because the dollar will become a hedge and counteract the effect of the interest rate drop.
Today, the economic calendar does not provide other important economic news, and by default, traders remain focused on trade rhetoric, Brexit and a whole bunch of geopolitical risks that inflate liquidity in the markets.
Trader Aleksandar Kumanov Read more:
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