What to Look out for Today – Some EU Markets Closed, Stocks See Gains

Something to keep in mind today is that Italian, Greek, Spanish, French and Portuguese Markets are closed due to Assumption Day.

The upcoming noteworthy events today are the UK’s CPI (YoY) and the US Retail Sales for July. Both currencies have been experiencing weakening the past week against other major currencies - the USD due to political volatility and GBP due to ongoing negative data in combination with the BoE’s ongoing dovish stance. So traders will likely be waiting to see in what direction the data will push their respective currencies.

Global stocks seem to be rally after the fears of a US/N. Korean conflict have abated when Kim Jong Un announced his intention to delay the missile tests near Guam, with Asian stock (which were the most affect) and the USD seeing the most significant benefits. Of course this effect rippled out from the two most effected trading instruments – and even the Eurostoxx 50, the FTSE and DAX futures saw a boost.

As expected other than the gain JPY experienced – other safe-havens slipped CHF losing 0.3% and Gold 0.7%.

Although the USD did see gains – due in part also to NY Fed President Dudley saying that the Fed would be trimming its portfolio, making an imminent rate hike still a possibility – today’s news of 3 CEO’s resigning from Trump’s American Manufacturing Council in response to violence during a white supremacy rally in Charlottesville Virginia. This could cause traders to be less “risk-on” with the USD – but at the moment it doesn’t seem to have an effect on the currency.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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