How Will The G7 Meeting Affect The Forex Markets This Week?
Global trade tensions and geopolitics are expected to have a significant impact on the forex market in the coming week. On Monday morning, the dollar was seen trading lower against its rivals as investors were still assessing the fallout from the Group of Seven (G7) summit held in Canada over the weekend. U.S. President Donald Trump threatened to stop trading with countries that do not reduce barriers to American exports. President Trump continued to threaten his closest allies for allegedly treating the United States unfairly. Trump’s unwillingness to make any compromises and his continuous imposing of new tariffs on imported goods, make the prospect of a trade war an all-too-real prospect. The resulting instability caused by the threat of a trade war is expected to push safe haven assets such as the gold and Japanese yen higher, while weighing on the USD. It should be noted that an eminent meeting between Trump and North Korea’s leader Kim Jong Un scheduled for Tuesday will also keep investors on edge this week.
EUR/USD Likely To Consolidate
Markets are keeping an eye on Europe amid widespread speculation the European Central Bank could finally signal an end to its bond purchasing program when it holds its policy meeting this Thursday. The EUR/USD is going to face one of the most crucial ECB meetings as a deadline to quantitative easing could cause the EUR to rally higher against its rivals! Meanwhile, the Federal Reserve is widely expected to announce an interest rate hike in its post-meeting statement on Wednesday and investors will be watching for signals from the U.S. central bank on its plans for the rest of the year. A rate hike by the Fed is not expected to push the USD higher however, as the hike has already been priced in. You can keep track of all the upcoming important events and releases BDSwiss Economic Calendar and join or Live Webinars to watch our professional traders trade these key events live.**
BOJ Policy Announcement To Affect USDJPY
The Bank of Japan (BoJ) is seen keeping policy on hold at the conclusion of its two-day rate review on Friday, while it is also expected to make a pledge to keep short-term interest rates at -0.1%. BoJ Governor Haruhiko Kuroda will hold a press conference afterward to discuss his decisions. What investors will be focusing at however, is whether Kuroda will signal any definite deadlines to an exit from BOJ’s ultra easy monetary policy. There have been some indications recently that the BoJ is setting the ground to begin discussions on winding back its quantitative easing program due to the rising costs. Any revelations as to when and how BOJ plans to wind back its monetary easing program, should provide some further support to the JPY.***
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Upcoming Earnings Reports This Week:
14/62018 – Adobe Systems Incorporated. (#ADBE) to report post-market
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