Talking Points
- The Dollar and US stocks may continue to fall on North Korea and Donald Trump's problems, including the disbanding of business councils.
- A risk off tone is helping gold and the Yen.
- The Euro is up on the ECB’s concerns about appreciation.
- Next week sees UK Q2 GDP, Ifo and ZEW, Euro-Zone PMIs and the Jackson Hole symposium.
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Markets finished last week on the back foot as US political turmoil took center stage, with many of Donald Trump’s business counsellors resigning. It’s risk off mode, sending equity indices through the floor as traders piled into safe haven assets, especially gold.
Daily FX Editor and Analyst Martin Essex explains how risk aversion mode is pushing money into safe havens and talks us through the gold chart.
For the week ahead, flash purchasing managers’ indices (PMIs) from the Euro-Zone are the big events to look out for in the wake of the European Central Bank sounding the alarm this week at the Euro’s strength. The currency just keeps on appreciating – which is putting pressure on the bloc’s exporters.
The key events which could shape market sentiment is the UK’s second quarter GDP, Germany’s Ifo and ZEW, Euro-Zone PMIs and the Jackson Hole symposium. where both Federal Reserve Chair Janet Yellen and ECB President Mario Draghi will speak.
--- Written by Martin Essex, Analyst and Editor, and Katie Pilbeam
To contact Martin, email him at martin.essex@ig.com
Follow Martin on Twitter @MartinSEssex
To contact Katie, email her at katie.pilbeam@ig.com
Follow Katie on Twitter @KatiePilbeamIG
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