Monday Starts in Bullish Mood

By Peter Bukov|

Published: June 27 2022, 08:26 GMT+0

Monday Starts in Bullish Mood


The start of the new week seems optimistic, as US equity futures trade nearly 1% higher during the EU session, while EU benchmarks are also seen advancing.As usual, the risk-on sentiment means a weaker dollar, pushing the EURUSD pair toward 1.06, GBPUSD above 1.23, and USDJPY below 135.

Investors will be following the three-day ECB symposium, which begins on Monday in Portugal, for hints on how the central bank sees the trade-off between containing inflation and attempting to guarantee a smooth landing for the global economy.

Traders will also be watching for additional news from the Group of Seven leaders’ three-day meeting, which started on Sunday. The agenda is expected to be dominated by the situation in Ukraine and the prospects for the world economy.

You may also read: CAC Respects Previous Lows

Some Fed speak

Mary Daly, president of the San Francisco Fed, stated that she is ready to support an additional interest rate hike of 75 basis points in July. President of the St. Louis Federal Reserve Bank James Bullard reaffirmed that frontloading rate increases are still necessary to get inflation under control.

In other news, the IMF lowered its prediction for US growth and sees a narrower path to avert a recession. Now anticipates US GDP to increase by 2.9% in 2022, below the most recent projection of 3.7% in April. IMF decreased its 2023 prediction from 2.3% to 1.7%. and now only expects  0.8% growth in 2024

“Based on the median projection for the policy rate published at the June FOMC meeting, we expect the US economy will slow in 2022-23 but narrowly avoid a recession,” the IMF noted in its publication.