Central Banks in Focus. FTSE 100 Higher.
Welcome to this week’s Market Blast Fundamentals where we will look at GBPCAD, the VIX, USDZAR, the FTSE 100 (UK100), and the DAX (DE30).
Recent falls in the three major US Indices may be slowing or reversing on vaccine hopes, and we see Indices like Germany’s DAX climbing to pre-COVID levels.
The Nikkei is up as well on the appointment of a new Prime Minister in Japan and the UK’s FTSE 100 has shown steady growth for the last 7 market sessions, opening with a gap this morning.
Don’t forget that this index is usually inversely correlated to the value of GBP as most big UK companies have International income.
As we know the pound has fallen recently on the continuing lack of progress with Brexit and a possible back-bench rebellion in the UK Parliament.
Therefore, we will be following the economic news Thursday for the Bank of England Interest Rate decision where analysts are expecting no change, and news about unemployment claims tomorrow and UK Retail Sales Friday.
Other Central Banks will be announcing Interest Rates this week so we will be watching for volatility with Wednesday’s US Fed decision and the subsequent press conference;
the same in Japan Thursday, followed later in the day from South Africa and we will be looking at the Rand tomorrow.
The VIX has fallen dramatically since the equities’ crash from the beginning of the month and market calm will see it fall further.
We see CAD consolidating against all except the Pound and we will watch for Retail Sales figures Friday.
That’s all for now. Happy trading with Valutrades and we will see you tomorrow.
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