Pinches of spice but not a lot game changers
Good Sunday evening dear forex friends, welcome back to our Nihon no tomodachi from Golden Week
We’re opening close to Friday’s closing levels. Here’s what my watery eye caught in the weekend press…
Bit of uncertainty on EM currencies ,bit of NK trying to pull the sheets back, bit of May trying to please multinationals at the risk of getting more pressure,
bit of Trump running over UK and France with various misplaced comments and his buddy Giuliani talking to press about subpoenas and women.
A bit of never ending tensions in the Middle East: Iran and Turkey .
Bit of Greek banks taking a 15.5Bln € hit if stress tests would be stricter but it’s all ok …
China and the US in the meantime agreed to continue to talk but I haven’t agreed on anything concrete.
Individually I don’t see any of these events shock the markets, but as with all good spices, it’s the mix that makes the dish. And that mix to me is not very positive to start the week with. Risk should find a lid on small rallies if the market decides to pay any attention at all.
The rest of the week sees a good few potential market movers CB’ side,BOJ Minutes today at 23:50 gmt, BOC Lane in the morning on a panel discussion at 8:00 gmt, Powell on Tuesday, RBNZ on Wednesday, BOE on Thursday together with US CPI , BOC review the same day and Super Mario to end the week on Friday. Throw in a few IP’s, PPI’s and CPI from China, we should be in for another spicy week. I fancy a curry now …
We wish you a cracker of a week in our company again, don’t forget tomorrow is UK Bank holiday. There may a bit less liquidity if moves get underway.