Lately
markets are living on the edge over everything from terror attacks in London, Middle East’s uncertainties, the turmoil surrounding Trump’s
administration to the dramatic UK elections.
But at this very moment the tension on markets is extremely rising ahead of very
unusual Thursday, as we have three quite important events.
The official views on inflation will be reveiled on the European Central Bank’s
meeting and most important is will there be any change in its easing stance.
Hopes somehow have been reinforced by the hawkish position of policymakers, but
let’s see if Super Mario will keep his dovish stand about QE, considering the attempts to down-talk the
possibility to trim easings.
Next
to come is the former FBI Director James Comey 's testimony. In case he state
that US President Donald Trump had asked him to avoid investigating the
"Russia-gate", possible impeachment issue will be on focus. Markets
do not care much about politics as there is no huge impact in economy, but I expect
that US dollar will be sent down across the board.
Alongside
with the ECB and Comey’s testimony, this Thursday the UK will have their General
Election. Current polls show Conservatives 44 pct and Labour on 34 pct. Conservative victory with or without absolute majority
or laborist victory? Whatever happens there are no doubts that high
volatility is guaranteed.
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