Political Turmoil Deepens in the U.K.
14/6: Fed Interest Rate Decision to Affect the USD
15/6: BoE Interest Rate Decision to Affect the GBP
Last Week’s Recap – Political Turmoil Unsettles the Markets
The Markets are still recovering from last week’s global political turmoil. In the U.K., Theresa May’s Conservative party lost its outright majority in parliament, in the U.S. Wall Street digested former FBI Director James Comey’s testimony, while in Italy the populist Five Star Movement suffered a severe setback in local elections.*
Monday Morning Briefing – Political Turmoil Deepens in the U.K.
Theresa May may have won the U.K. Elections but she did not secure the landslide majority she had hoped for. The new British cabinet is set to have its first meeting this Monday after Prime Minister Theresa May was reelected with a minority government. May is still in talks with Northern Ireland’s Democratic Unionist Party over a deal that could allow her Conservative Party to govern as a minority administration. The Prime Minister also reappointed most of her ministers on Sunday but reports indicate that the new government could adopt a softer Brexit that will keep the U.K. in the single market.**
Important Events and News Releases that will Define this Week’s Markets:
WED 14/6 – Fed Interest Rate Decision to Affect the USD
The Federal Reserve is seen raising interest rates by 0.25 percent this Wednesday at 18:00 GMT in a move that is expected to support the USD and its pairs. It is worth noting that at their last monetary policy meeting the Federal Open Market Committee (FOMC) members voted to leave interest rates unchanged but gave a positive assessment of the U.S. economy. Analysts are thus very hopeful that the Fed will raise key interest rates this time around!***
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THU 15/6 – BoE Interest Rate Decision to Affect the GBP
The Bank of England is not expected to raise key interest rates this Thursday despite the fact that rates are currently at a record low of 0.25%. Dovish statements by BoE members could further damage the already depressed pound.***
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View all Important economic releases & events this week: