DailyFX European Market Wrap: Geopolitics Come Back into Focus for Markets
European markets are very quiet this Monday as geopolitical tensions in the Middle East and the Korean peninsula dominate, especially considering the lack of data releases, leaving traders with little to cling onto. G-7 foreign ministers have gathered in Italy today for a two-day meeting and the situation in Syria is likely to be top of the agenda when they meet behind closed doors.
A new serious contender has come to the forefront in the French presidential election. Jean-Luc Mélenchon has been gaining popularity and could be a rival for far right front runner Marine Le Pen. After the surprise Donald Trump victory and shock Brexit vote, nobody is taking anything for granted.
Barclays CEO Jes Staley is being investigated by two UK regulators. Barclays' board said Staley had "honestly, but mistakenly" sought the identity of a whistle blower within the bank without appropriate governance.
The price of gold is holding steady this Monday as geopolitical tensions are pushing investors towards the safe-haven metal, although it has failed to hold on to the highs reached on Friday.
Looking ahead to Tuesday, there’s UK retail sales and the big one is UK is CPI. Following recent signals by the Bank of England that a rate rise might not be far off, investors will be watching the raft of UK inflation data closely. Also keep an eye on EURUSD at 10 GMT when we get the German ZEW survey.
--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.