With the dark clouds hanging over global markets in recent weeks, from British and French elections to a rate increase from the US FOMC, markets participants have had plenty to worry about.
However, with Macron’s resounding win in the French elections over the weekend, it looks like clear sailing ahead, and European equities are up nicely as we head into the New York morning.
There are no important data releases on the calendar today, but there are some Fed speakers including Federal Reserve Bank of New York President William Dudley, due to speak at 8:00am EST, and Federal Reserve Bank of Chicago President Charles Evans later this evening at 7:00pm EST at the North Country Chamber of Commerce, in Plattsburgh.
Traders will be watching the Evans event closely as he will be speaking about economic conditions and is scheduled to engage in Q & A after the speech.
Dealers believe GBPUSD longs look lucrative as the Bank of Eengland turns increasingly hawkish and less willing to look through rising inflation, exceeding their own forecasts released in May. Some see one more leg up in GBP, towards 1.31/1.32.
With a light global economic calendar this week, the focus will be on UK related events including the start of Brexit negotiations today.
Oil currencies need to be watched as the US rig count rose for the 22nd week in a row, reaching the highest level since April 2015. A break of the 43.76 May low for WTI is being watched. CAD and NOK the main concerns if oil falls.