Volatility Expected Ahead of U.K. Elections
Wed: Japan GDP to Affect the JPY pairs
Thu: ECB Interest Rate Decision to Affect the EUR
Last Week’s Recap – Political Turmoil Continues to Cause High Volatility
Political tensions have escalated last week after U.S. President Donald Trump announced his decision to withdraw from the Paris climate accord, in a move that profoundly undermined the landmark agreement by nearly 200 countries to curtail global warming. The Markets will also be gearing up for the UK elections this week, an event which is expected to cause immense volatility for the GBP crosses and the FTSE 100. A Labour victory could cause GBP pairs to plummet and dramatically change the course of Brexit! A Conservative victory is seen pushing the pound higher and giving Theresa May a stronger mandate ahead of Brexit negotiations.*
Important Events and News Releases that will Define this Week’s Markets:
WED 7/6 – Japan GDP to Affect the JPY pairs
Japan’s GDP data is due to be released at 23:50 GMT this Wednesday. Investors will be looking closely at Japan’s Gross Domestic Product for the first quarter this week as it is the broadest measure of a country’s economic activity. It should be noted that Japan’s GDP has come in higher than expected last month at 0.5 percent and another higher than expected reading could push the JPY crosses higher.**
THU 8/6 – ECB Interest Rate Decision to Affect the EUR pairs
The European Central Bank is due to announce its monetary policy decisions and any changes to its key interest rates at 11:45 GMT on Thursday. It is important to note that the euro is currently under pressure by the European Central Bank’s insistence on keeping key interest rates unchanged at 0.5% since late 2014. Last week ECB president Mario Draghi stated that the eurozone still needs “an extraordinary amount of monetary support” from the European Central Bank in spite of its growing economic recovery. Consensus is therefore that the ECB will keep rates unchanged which is expected to cause the EUR/USD to trade lower.**
BDSwiss is offering a LIVE Trading Session on the day of the ECB interest rate announcement. Don’t miss your chance to join our FREE Live Trading Session and watch our experts identify and trade the opportunities that will arise on the day!
*Source: Bloomberg
**Source: Investing.com
View all Important economic releases & events this week:
https://www.bdswiss.com/economic-calendar/
