Once again, the rise in government bond yields is acting as the catalyst for the sell off in stocks.
Stocks markets and oil prices plummeted, while bonds and gold markets rallied today, following North Korea's long-range ballistic missile test as well as US markets on hold due to Independence Day celebrations, dampening risk appetite.
The start of the week was calm and didn't witness strong moves, but the US dollar managed to erase some of its losses last week, ahead of US employment data to be released on Friday. This was helped by the positive figures for the manufacturing sector, with the ISM Manufacturing PMI recording its highest reading in two and a half years at 57.8 points.
With the start of the second half of 2017, several important economic data will be released this week and are likely to have a significant impact on market movements.
This week witnessed a marked weakness for the US dollar against most of its rivals and investors turned to sell the dollar as many policy makers hinted to start a shift from the easing policy towards tightening policy to begin reducing the gap with US Federal Reserve policy. The dollar index has fallen to the lowest levels over 8 months at 95.20. On the other hand, the US economy grew by 1.4% in the first quarter of 2017.
The economic calendar today has seen few important economic events, except the final reading data for GDP in the United States, where the economy grew by 1.4% in the first quarter on an annualized basis. Personal consumption figures were revised up to 1.1%, while investment growth was revised down slightly.
The ECB Forum on Central Banks concluded today with discussions on investment and growth in developed economies. Mark Carney, the governor of the BOE, pushed the pound
The second day of the ECB's Central Bank Forum, which is being held this year on investment and growth in developed economies, kicked off today. Russia's largest oil producer, Rosneft, reported that its servers had been attacked, causing the company's computers to be disrupted.
The British pound fell sharply during the day as David Davis, minister in charge of negotiations with the European Union, arrived in Brussels to start the first days of formal talks for Brexit. The GBPUSD hit its lowest level since June 15 at 1.2723.
Prices may be delayed by 5 seconds. Prices above are subject to our website terms and conditions. Prices are indicative only
© 2023 Equiti, All Rights Reserved