FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1728
BTC/USD
42 567.79
GBP/USD
1.3640
USD/JPY
109.4710
USD/CHF
0.9230
USD/CAD
1.2802
EUR/JPY
128.3820

Markets turn defensive


18 June 2019

The mood across financial markets is set to remain cautious as investors find comfort on the sidelines ahead of several major central bank decisions over the coming days.

When factoring in how the US Federal Reserve, the Bank of England and the Bank of Japan will all be under the spotlight this week, market players will prefer to sit on the sidelines and await the outcome of these meetings in anticipation, before deciding what move to make in their portfolios.

Persistent US-China trade tensions, heightened geopolitical risks in the Middle East, Brexit uncertainty and concerns over decelerating global growth are clearly the enemies of central banks at present. The increased potential of another round of central banks easing monetary policy to counter a global slowdown continues to offer investors something to fall back on, but the key question is  - for how long?

Global equity markets have overall performed well in June, although the gains have been built on shaky foundations.

Should central bank policymakers sound less downbeat than the market is expecting and soften speculation of monetary easing, stock markets face the risk of tumbling like a house of cards.

Dollar bulls to be tested by Federal Reserve


Where the Dollar concludes this week will be heavily influenced by the outcome of the Federal Reserve policy meeting scheduled over the next two days.

While it is widely expected that US interest rates will be left unchanged this month, investors should not be quick to label this policy meeting as a non-event. Markets will be closely scrutinizing the meeting for confirmation of an interest rate cut occurring as early as next month. Should the Federal Reserve disappoint those expectations, or create a frenzy by not offering any hints about upcoming action to be taken in spite of persistent global headwinds, King Dollar should make a return and will look to shoot to the moon. 

Currency spotlight – GBPUSD


Investors who were looking for a fresh opportunity to attack the Pound were given the thumbs up yesterday on rising concerns that the leading candidate Boris Johnson, risks steering Britain towards the path of a no-deal Brexit should he become Prime Minister.

The past few days have certainly not been kind to the battered Pound which tumbled to a fresh 2019 low below 1.2520 earlier this morning. With the terrible combination of Brexit uncertainty and political risk in the UK haunting investor attraction towards Sterling, the path of least resistance points south.

Taking a look at the technical picture, the GBPUSD is under intense selling pressure on the daily charts. A breakdown below 1.2500 is seen opening a path towards 1.2430.


Related

Gold's sudden glow in a falling market
Gold's sudden glow in a falling market

Gold's ability to resist the general downtrend speaks to investor confidence that global central bank policies will remain soft enough to avoid triggering a global downward asset sell-off spiral...

21 Sep 2021

Forex and Cryptocurrency Forecast for September 20-24, 2021
Forex and Cryptocurrency Forecast for September 20-24, 2021

The dollar continues to strengthen, and the EUR/USD pair moves south. Starting on Monday September 13 at 1.1810, it ends the five-day run at 1.1730. The movement...

20 Sep 2021

Gold and Silver looking into the abyss
Gold and Silver looking into the abyss

Strong US data revived bets on an imminent QE rollback from the Fed, supporting the dollar and causing bond yields to rise. The news triggered a more than 2% plunge in gold prices...

17 Sep 2021

Stocks pick up some bid after textbook SP 500 bounce
Stocks pick up some bid after textbook SP 500 bounce

European stock markets were modestly higher on Thursday after a rebound in the US and another dip for Asian equities overnight. Hong Kong down 1.7%...

16 Sep 2021

Stock Futures Trade Lower, Investors Worry About Fed Tapering
Stock Futures Trade Lower, Investors Worry About Fed Tapering

US and European futures are trading lower today, following a retracement in US indices. The Dow Jones Industrial Average fell nearly 290 points, wiping out gains...

15 Sep 2021

Futures in the United States and Europe are up today
Futures in the United States and Europe are up today

Futures in the United States and Europe are up today after the Dow managed to gain nearly 260 points and break its five-day losing streak. Although investors...

14 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.