Trade tensions continue to unnerve all the financial markets and pretty much every market is starting this week with a softer bias. The Nikkei225 traded 178 points lower overnight whilst the Hang Seng is nearly 400 points lighter as I write. This comes off the back of the DOW adding 119 points on Friday and snapping a losing streak that had lasted all week before energy stocks started to improve.
DOW futures though trade 180 points lower this morning
Trade Wars and the EU summit are hot on the geo-political agenda this week as a busy week for economic data will also come into the spotlight. Currencies will undoubtedly see significant movement this week as the numbers start to be released.
June Consumer confidence figures, due out on Tuesday will dictate the early path of the dollar this week. Will we see dollar strength return or have we changed direction? A jump in consumer confidence will see a boost in the dollar.
The BOE Financial Stability report on Tuesday will provide the initial catalyst for sterling this week. Any upward revision of GDP numbers or a hawkish view on inflation will see sterling start to move. Mark carney will also be talking on Wednesday. Will we see a continuation of the most recent moves or a breaking down of last week’s rally?
I have SOLD EUR/USD at 1.1645
I have BOUGHT DAX futures at 12,443