Ipek Ozkardeskaya
Swissquote Bank Ltd
We have different moods on different continents this week. The European equities remained under the pressure of heating French political tensions on Tuesday, meanwhile, on the other side of the Atlantic Ocean, the major stock indices in the US advanced to fresh records on the back of a strong 10-year auction a day before the latest CPI update and the Federal Reserve (Fed) decision which will likely determine the global market mood for the rest of the month, and a good part of summer.
In the FX, while the US yields are giving back the post-jobs advance, and the softer yields echo well across the major indices, the US dollar index remains upbeat by inflation and Fed uncertainties, and the political shenanigans on this side of the Atlantic Ocean.
While the election uncertainty in France doesn’t do much good to the euro, the pound sterling looks much less battered by the idea that the Conservatives will likely say Good Bye to their majority next month. In fact, a recent survey from Bloomberg hinted that a Labour win would be better for both the pound, gilts and stocks – which is unusual.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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