G7 leaders fail to reach a consensus
Attention shifts to ECB and FOMC decisions that will be made later this week
A cryptocurrency exchange hack sinks digital assets
Leaders of the G7 group failed to reached consensus during the summit with the US president rejecting the joint communique. However, on Monday we are observing gains on the most of the European stock markets as some pro-European remarks came from Italy. JPY is the weakest currency from the G10 basket followed by the GBP. On the other hand, the Swedish krone outperforms its major peers. Taking a look at the commodity market one can see oil price declining and industrial metals trading mixed.
Another rout stormed the cryptocurrency market over the weekend as one of the South Korean exchanges said there was a “cyber intrusion” in its system and an unknown amount of digital assets has been stolen. Steep declines were observed on all the major coins with Bitcoin plunging below the $7000 handle.
It’s not that common to have the two most important calendar events in a month to be separated by less than 24 hours so traders really will be on alert in anticipation of potentially game changing decisions. In this analysis we point out what the banks could do but also what’s been already discounted by the markets.
A package of April data from the UK came in well below expectations sending the British currency broadly lower. However, risks of a prolonged downside move against the US dollar appear to be limited unlike the euro. Shortly after 10:00 am BST the pound is the second worst currency within the G10 basket.
Italian shares are surging while bond yields collapsing following a stream of pro-European remarks voiced by Italy’s economy minister over the weekend. The opening of the Italy’s stock market suits upbeat moods across the old continent even as the G7 summit ended with no consensus.
The G7 summit taking place in Canada was on top of a list of events last week, and as expected there was no consensus hammered out. Admittedly, the group of seven countries approved a joint communique, but it was quickly rejected by US President Donald Trump via… Twitter.