European trading Session – June 24
- FTSE +0.50% (enjoying a lift on some moderate GBP weakness)
- Euro Stoxx +0.93%
- Italian FTSE +0.63%
- Dax +0.63%
- CAC +1.02%
It was an extremely quiet session ahead of the BoE with nearly all markets calm across the board. There are a swathe of Fed speakers due today, so that would have only added to sense of indecision. Do check out the guide here I wrote on how to trade central bank speeches.
You can then use that guide and take a careful look at what Fed’s Williams says later. See here for more info on the speakers and their biases.
Latest data from Scotland is highly suggestive of a break in the link between COVID-19 cases, hospitalisations and deaths. See here. Although scientifically it hasn’t been ‘proven’ the law of Occam’s razor would lead us to see that it is the vaccine that is slowing down the rate of hospitalisations in Scotland. Government’s will now move to helping their citizen’s live with COVID-19.
German business confidence came in very strongly and this release confirms the strong flash PMI sentiment from Germany yesterday. German domestic economy picking up speed now.
There was some more comment after Russia’s spat with the UK navy in the Black Sea with UK’s Environment Sec playing it down. UK Foreign Sec Raab also chimed in. Basically posturing going on, so nothing new. Russia likes to try and ruffle the UK Navy’s feathers from time to time.
Interesting role that Russia is playing and the rise of nationalism is always worrying. Nationalism generally being the catalyst to armed conflict and patriotism gone bad. So, keep an eye on Russia and the build up of troops around Ukraine. However, Russia are not going to make any moves that rile the US, so a slow burner there unless things radically change.
Felt like Samuel Beckett’s waiting for Godot today, but unlike Beckett, our main protagonist turned up in the form of the Bank of England. Bullish expectations from SONIA futures were in the end dashed and the BoE took a conservative approach to loosening monetary policy. See here for more.
My EURGBP and GBPCHF pound longs were all taken out at breakeven. Pity. It is time for a song – Pet Shop Boys – Se A Vida E (That’s The Way Life Is). Skip the intro and get to the good bit…Enjoy my trading friends !
Back tomorrow for my final day in the forexlive.com saddle