Markets Brace for UK Elections, ex FBI Director Testimony, and ECB Decision
In today’s fundamental analysis: could today shape up to be ‘a perfect trading storm’ with three financial events lined up? Markets were relatively quiet overnight, waiting for what could potentially be the most important day of 2017. What is happening today? The big event is the UK snap election, we are also expecting the European Central Bank (ECB) interest rate decision and ECB president Mario Draghi’s speech, as well as ex-FBI director James Comey’s Senate Testimony which may be the first sign of a potential Trump impeachment.
- Trump will be scrutinized because in his written testimony, Comey quoted President Donald Trump as telling him: “I hope you can see your way clear to letting this go, to letting Flynn go.” This constitutes favorable treatment and many democrats are now calling for impeachment.
- The dollar has wiped out most of the gains achieved since Donald Trump was elected to be the U.S. President as investors are growing more skeptical about the Trump administration’s ability to deliver on its pro-growth economic agenda, which includes tax-reform.
- In the UK, all eyes will be on the general election with exit polls released at 23:00 CET. The Conservatives’ lead in the polls over Labour has narrowed significantly over the past couple of weeks, increasing the risk of a hung parliament.
- Oil prices dropped sharply yesterday, following a report that showed the biggest weekly rise in US stockpiles since 2008. Brent oil prices declined more than USD1 to USD48.4 per barrel. It is the lowest level since November last year and with China showing clear signs of slowdown, risk is mainly on the downside.
Wait for tomorrow’s bullet report to see how the markets have reacted to the three major financial events happening today, especially the anticipated UK election. Always stay on top of the market and on top your trading.