Money Flows before the start of European trading todaypetar skakalov
The futures of European indices indicate a flat opening, as investors prepare for a cautious start. Today, the PMI data on the euro area economy, the ECB’s interest rate decision and Mario Draghi’s latest press conference will be fully focused on PMI. The Swiss franc has given way to the yen since the start of the Asian session. The US dollar remains strong only against the franc, with the euro retaining positions pending data and developments around the ECB. The British pound has been stuck in green territory after Johnson passed the ball into the EU box and development is expected on whether there will be a Brexit extension and under what conditions. During the Asian session, the kiwi and the Australian dollar were the weakest currencies, and we expect the pace to remain negative there because of the weakening of the South Korean economy, which affects trade relations between the three countries. The Canadian dollar has lost ground since the start of trade in Asia, with the price already struggling to find a bottom line with rising oil prices and stabilizing Canada’s political situation. Later, we expect cash flow as the US session approaches to concentrate on the reports. Today is one of the busiest days for companies, with the US session definitely going to be as busy as possible with data assimilation. During the US session, we also have a foundation – PMI data, new home sales and initial requests for benefits. Gold continues to creep away, albeit in the green today, with the direction likely to be clear at 30.10 when the Fed decides on interest rates. Oil remains strong after the surprisingly smaller inventory reported for US stocks. Given the current calm situation around “black gold”, we expect it to continue to stabilize. The Turkish pound has started to return after Trump announced he was considering no longer imposing sanctions on Turkey. On the crypto front, the price of Bitcoin remains below 7500, and we expect the decline to continue due to the heavy pressure of the US Congress on Zuckerburg and Libra.