Market Review 19-06

Market Review 19-06

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Things You Need to Know to Start Your Day

Mario Draghi

European Central Bank President Mario Draghi shook the market. He pointed decisively towards more stimulus measures centered on rate cuts, blaming prolonged economic uncertainty for the bank having to reopen its toolkit. Government bonds had a field day and stocks jumped.

Draghi’s colleague Peter Praet also said the ECB is not to blame for all the uncertainty. The next ECB meeting will be a live one, but before starting to consider that, and indeed the Bank of England on Thursday, it’s going to be the Federal Reserve that takes center stage…

Federal Funds Rate (21:30)

Over to Jerome Powell and his colleagues, with the Fed decision due after Europe closes on Wednesday. The attention will be on when the central bank is going to cut rates, with no move expected this week but a quarter-point cut considered the most likely move eventually. As Powell and his cohort are becoming accustomed to, they’ll make the decision in the shadow of a Trump administration which is said to have looked into the legality of demoting the chair.

https://www.bloomberg.com/news/articles/2019-06-19/five-things-you-need-to-know-to-start-your-day?srnd=markets-vp

The big question is whether Fed officials consider its time to do it, or if they can wait to gather more data before dropping the rate-cut bomb. By the end of last week, odds for a rate cut next July were of about 80%, and a clear sign toward such a move will be Fed officials dropping ‘patient’ from the statement. If that’s not the case, the greenback could get a nice boost, although Wall Street will probably suffer. Market’s eyes will also be on the dot-plot and any change there.

USD/JPY slides back closer to 108.00 mark, focus remains on FOMC

The USD/JPY pair came under some renewed selling pressure on Wednesday and is currently placed at the lower end of its daily trading range, around the 108.30-25 region.

Trading Central – USDJPY : sentiment is a sell to 106.70 if Below 109.75.

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10265627

Number of Lots:
Required Margin:
Risk Management (200%):
Potential Profit / Loss @ 106.70
1
€ 2,976.19
€ 5,952.38
€ 1,312.00
5
€ 14,880.95
€ 29,761.90
€ 6,560.00
10
€ 29,761.90
€ 59,523.81
€ 13,120.00
25
€ 74,404.76
€ 148,809.52
€ 32,800.00
50
€ 148,809.52
€ 297,619.05
€ 65,600.00

Trading Central – USDCHF : sentiment is a sell to 0.9855 if Below 1.0080.

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10265630

Number of Lots:
Required Margin:
Risk Management (200%):
Potential Profit / Loss @ 0.9855
1
€ 2,976.19
€ 5,952.38
€ 1,223.96
5
€ 14,880.95
€ 29,761.90
€ 6,119.79
10
€ 29,761.90
€ 59,523.81
€ 12,239.58
25
€ 74,404.76
€ 148,809.52
€ 30,598.95
50
€ 148,809.52
€ 297,619.05
€ 61,197.90

Risk Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.28% of retail investor accounts lose money when trading CFDs with this provider. The information contained in this market review should not be construed in any way, as containing investment advice and/or a suggestion and/or solicitation for any trading activity and financial transaction. The data contained in this market review is not necessarily real-time nor accurate. The data and prices on the material are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. There is no guarantee and/or prediction of future performance. EuropeFX, its affiliates, agents, directors or employees do not guarantee the accuracy and validity of any information or data made available and assume no liability as to any loss arising from any investment based on the same. Trading Forex/CFD’s carries a high level of risk and can result in the loss of your whole investment. Forex/CFD’s are leveraged products and therefore Forex/CFD’s trading may not be appropriate for all investors. It is recommended that you do not invest more money than you can afford to lose to avoid significant financial problems in the case of losses. Please make sure you define the maximum risk acceptable for yourself.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.99% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Find more details about risk here.

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