Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
News

Euro retreats as traders prepare for Comey, ECB and UK election

The quiet part of this week for news is nearing an end. Traders have been preparing all week for the flurry of potentially big developments starting tonight, running through tomorrow and into Friday morning. 

So far today, trading has been mixed. Despite a 4.6 mmbbl drawdown in API oil inventories, oil is giving some of yesterday's gains in a normal trading correction ahead of today's DOE inventories. US index futures are flat while the FTSE and Dax are up 0.25%.

Preparations in currency markets for tomorrow's big events have unfolded in stages, late last week the pound bounced back, earlier this week JPY and Gold rallied ‎earlier this week. reflecting growing political risk concerns. 

Today, the Euro is in the spotlight, tumbling ahead of tomorrow's ECB meeting. The single currency had been climbing since the French election on perceptions of easing politi‎cal risk on the continent enabling the ECB to ease back on the gas earlier than previously thought. Overnight, however, reports have suggested the ECB may lower, not raise its inflation estimate due to falling oil prices. This could remove pressure from the ECB to signal changes to its currently ultra-dovish stance on monetary policy. 

Tonight brings China trade data which could impact resource sensitive markets. Tomorrow, former FBI Director Comey's testimony to Congress may impact USD and US markets by either reigniting or killing impeachment speculation. Voters in the UK go to the polls with a study from Lord Ashcroft suggesting the Conservatives could win a 64 seat majority. Results late Thursday could spark significant market activity into Friday.


Corporate News

Dollarama    $0.82 vs street $0.79


Economic News

Significant announcements released overnight include:

Australia GDP            street 1.6% vs previous 2.4%

Germany factory orders        (2.1%) vs street 4.7% vs previous 2.4%
UK Halifax house prices        3.3% vs street 3.0% vs previous 3.8%
Italy retail sales            1.2% vs street 0.9%

 

Upcoming significant economic announcements include:

10:30 am EDT        US DOE Crude oil inventories    street (3.0 mmbbls) 
10:30 am EDT        US DOE gasoline inventories    street 0.9 mmbbls


Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.