Summary:
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Polish equities resist downward pressure seen across the Old Continent
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NZD continues to outperform other majors
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Markets await Powell’s testimony
The first half of the European trading session was marked by moderate declines across region’s equity markets. Russian stocks are the biggest underperformers from the Old Continent, while the Polish blue chip index WIG20 is one of a few to stay afloat. NZD is the top performing currency out of the G10 basket followed by the SEK. On the other hand we have Japanese yen and British pound that are underperforming the most against other majors. Gold is trading slightly higher along with oil. Markets await the top event of the day - Jerome Powell testimony to Senate scheduled at 3:00 pm BST.
The CFA Institute, one of the most popular and renowned financial associations, will include the cryptocurrencies-related section in their exam preparation materials. Cryptocurrencies and blockchain among other topics will form the “Fintech in Investment Management” section. The CFA exams are considered to be one of the most difficult in the investment industry.
The level of employment in the UK economy reached its record high during the three months through May suggesting there could be still some slack left. Concurrently, wage pressure eased to some extent implying that the August rate hike could be just a ’one and done’ move as for this year. Either way, the British currency has moved forward immediately after the release being propped up by the weakish dollar.
Following the publication of Brexit referendum results many thought that the “big finance” will move from London to Frankfurt making the German city new European financial hub. However, as time passes by this dream is getting more and more distant as several major banks, like for example JPMorgan and Goldman Sachs, decided to spread jobs all across the European Union.
Core inflation, called ’sectoral factor model’ reached 1.7% in annual terms sending some encouraging signals to NZD traders that the central bank may have to alter its forward guidance at the next meeting. Notice that the RBNZ put a phrase that the next move could be either down or up (depending on necessity) at its June’s meeting.
Fed chair testimony is another extraordinary event next to the Trump-Putin summit scheduled for this week. Jerome Powell will testify to the Senate Banking Committee today while hearings at the House of Representatives are planned for Wednesday. The event will be closely watched as it will be the first semiannual testimony of Powell as a Fed chair.
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