Money Flows before the start of the European Session

Today at 14:00 Bulgarian time will announce the results for a new Conservative leader and a new Prime Minister of the United Kingdom. Boris Johnson is expected to lead the way as markets adjust to the results. Today, the pound and European markets will be short-lived, and this will give a clear signal during the US Session. Indicatively, the indices point to a stronger opening, as markets will also assimilate the optimism about trade talks and the reporting season, which are not as bad as they were first. This week, however, FAANG shares are being held, and markets will concentrate most on them.

Back in Europe, the pound will be "happy" with Boris's victory because his approach at this stage is best with the Brexit process. In terms of the calendar, besides the results, there are no other fundamental facts about Europe that we have to wait for. Later in the US session we have sales of existing homes.

On the oil markets, we expect growth to be kept in mind with the continuing tension between Iran and the United States. Gold is expecting to start a slight adjustment to the FOMC on 31.07 when the Fed is expected to cut interest rates by 25 basis points. Until then, there will be no other speeches by FOMC representatives. In this case, the Fed's noise will be turned off, focusing on Brexit, the trade war and the reports. We expect the dollar to continue rising against a background of risk-on sentiment.

Read more:

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• Has the war between Iran and the US started?
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