- Silver hangs on at the June lows for now
- Dollar keeps on firmer footing following last week's advance
- AUD/USD looks poised for longest losing streak since August last year
- Japanese yen continues to find bids in the early stages this week
- European equities open in a more mixed mood to start the day
- What are the main events for today?
- ECB's de Guindos: September is a much more convenient month for taking decisions
- Eurostoxx futures +0.2% in early European trading
- USD/JPY remains heavy to start the week
The European session was empty on the data front. The highlight continues to be the US Dollar as the greenback has been gaining ground against the major currencies since last Wednesday.
It’s not clear what is behind the move. The data continues to point to a resilient economy with inflation falling slowly back to target. That should see the Fed cutting rates at least two times this year.
On the other hand, Trump is looking more and more like a potential winner and his policies are seen as inflationary, which could see the Fed eventually going even more slowly on rate cuts.
In other markets, the US and European stocks continue to rally, while the Chinese stocks remain under pressure. Treasury yields are down on the day while Gold is up.
Crude oil has been under sustained strain since last week and that could fit with Trump’s presidency narrative due to higher supply expectations.
Bitcoin has been stuck in a consolidation around a key resistance since last Friday, but a Trump’s presidency should be a strong bullish driver for the cryptocurrency (all else being equal).