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BoE set to raise rates, but can the pound rally?

Marios Hadjikyriacos Analysis

The Bank of England (BoE) is widely anticipated to raise its benchmark interest rate via a 7-2 vote on Thursday, at 1100 GMT. Such a move is practically fully priced in already and thus, price action in sterling will depend largely on the signals the Bank sends regarding the prospect of more rate increases before long. Overall though, even in …

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SNB: The song remains the same

Marios Hadjikyriacos Analysis

The Swiss National Bank (SNB) is widely expected to keep its policy unchanged when it meets on Thursday, at 0730 GMT. Markets will look for hints on whether the Bank is contemplating an eventual exit from its ultra-loose policies. Although Swiss economic data are painting a more colorful picture, it still appears too early for policymakers to signal an exit …

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Cryptocurrencies – A brave new world

Marios Hadjikyriacos Analysis

“All money is a matter of belief” is a phrase attributed to Adam Smith, the father of modern economics. Whether Smith really said it or not, the meaning behind the quote remains as relevant as ever today, in an age where the very definition of money is rapidly evolving. The introduction of digital currencies in recent years has reignited the …

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Trade tensions set to escalate, will markets take notice?

Marios Hadjikyriacos Analysis

The trade narrative has been somewhat overshadowed by geopolitics and central bank meetings lately, but that may change as soon as today. The US is set to announce a revised list of Chinese products it will impose tariffs on, which could provoke a proportional response from China and reignite fears of a trade war. While the situation may escalate in …

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ECB: More upbeat, but June may be too early for QE commitment

Marios Hadjikyriacos Analysis

When the European Central Bank (ECB) announces its rate decision on Thursday at 1145 GMT and President Draghi holds his press conference at 1230 GMT, policymakers will have a delicate job on their hands of signaling that the end of QE is drawing closer. Markets are speculating the Bank may announce a firm end-date to its asset purchases, implying that …

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US inflation data in sight as Fed gathers

Marios Hadjikyriacos Analysis

As Fed policymakers kick off their two-day policy meeting on Tuesday, the US will also release its inflation readings for May, at 1230 GMT. Forecasts point to a further acceleration in price pressures, something that could amplify speculation for a more hawkish set of rate-path projections by policymakers and thereby, enhance the dollar’s appeal ahead of the actual rate decision. …

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Apple hits fresh all-time high; bullish bias back in force

Marios Hadjikyriacos Analysis

Apple’s stock reached a fresh all-time high of 193.90 on Thursday, having staged a spectacular rally after touching a ten-week low of 160.50 on April 27. Price action remains comfortably above both the 100-day and 200-day moving averages, reinforcing the bullish medium-term outlook. Looking at momentum oscillators, the RSI has just turned down after meeting resistance near its overbought 70 …

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Can upcoming risk events break gold out of its lull?

Marios Hadjikyriacos Analysis

Gold prices have continued trading in a quiet manner, unable to break the narrow range that has been established in recent weeks. While the geopolitical arena seems to be posing less of a risk for markets, developments around global trade have not been as encouraging, leaving investors with little motivation to alter their exposure to havens like gold. That might …

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Oil bears wake from hibernation as OPEC decision approaches

Marios Hadjikyriacos Analysis

Recent developments have seen oil prices correct lower, amid speculation that major OPEC and non-OPEC producers may soon “open the taps” and raise production to offset supply losses from Iran and Venezuela. While the final decision will be taken at the June 22 OPEC meeting, prices are likely to move well ahead of that time on any comments from various …

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Battered euro looks to Eurozone’s inflation data for some reprieve

Marios Hadjikyriacos Analysis

The common European currency has plunged in recent weeks, as a combination of heightened political uncertainty in Italy, a slowing Eurozone economy, and an increasingly cautious tone by the ECB have taken their toll. In the midst of all this, the battered euro will look for some reprieve in Eurozone’s inflation data for May, due out on Thursday at 0900 …