European Markets Open Higher Ahead of Brexit Talks

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European Markets Open Higher

21/6 RBNZ Interest Rate Decision to Affect the NZD

23/6 German Manufacturing PMI to Affect the EUR



Last Week’s Recap – Federal Reserve Raises Interest Rates Pushing the Greenback Higher

The dollar rose to two week highs last week as solid readings on the U.S. economy helped the Federal Reserve raise interest rates. The number of Americans filing unemployment claims also fell more than expected last week, suggesting that slack in the labor market was finally shrinking. Meanwhile, sterling traded mostly flat at the beginning of the week but jumped more than a cent last Thursday on signs that the Bank of England’s stance on keeping interest rates at record lows may shift.*


Monday Morning Briefing – European Markets Open Higher Ahead of Brexit Talks

European bourses started the week on a bullish note today, as investors look closely at a number of political events across Europe. Specifically, U.K. Brexit Secretary David Davis will begin negotiations in Brussels today almost one year after the U.K. voted to leave the European Union. It should also be noted that the discussions come less than two weeks after Theresa May and her Conservative Party lost the parliamentary majority, which added more uncertainty to Britain’s current Brexit stance. Investors will be paying close attention to the pound this week, as it is expected to react to major news and updates surrounding the negotiations. Meanwhile, French President Emmanuel Macron secured a majority in the country’s parliamentary election on Sunday.**


Important Events and News Releases that will Define this Week’s Markets:

WED 21/6 – RBNZ Interest Rate Decision to Affect the NZD

The Reserve Bank of New Zealand has held its benchmark interest rate at 1.75% for four consecutive months in 2017. Forecasts are pointing to another “no-change” this Wednesday. It should be noted however, that a hawkish stance by the RBNZ governor, could push the Kiwi higher.***


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FRI 23/6 – German Manufacturing PMI to Affect the EUR

The German Manufacturing Purchasing Managers’ Index came in higher than expected at 59.5 for the last two weeks of May and pointed to a steadily growing German manufacturing sector. Another higher than expected reading this Friday at 7:30 GMT should be taken as positive for the EUR and its crosses.***


*Source: Bloomberg
**Source: CNBC


View all Important economic releases & events this week:

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