A slow start to the week, central bank speak and key data eyed

It’s been a relatively slow start to the week so far but things are likely to pick up with more appearances from prominent central bankers and key data due for release in the coming days.

Equity markets are a little higher early in the European session after what has been a tough couple of weeks. Stubborn inflation has investors concerned that there may be a much heavier economic price to pay for restoring price stability which appears to have shaken confidence a little.

Not only are more rate hikes being priced in but the prospect of rate cuts this year has become more fantasy than reality. Obviously, some are faring much worse than others, the UK being a prime example, but progress has also been much slower than hoped elsewhere and the likelihood is that getting from 4% to 2%, for example, may prove more challenging again. We need to see some concrete signs of progress or sentiment could suffer much further.

Can bitcoin be propelled higher on ETF excitement?

We’ve seen some consolidation in bitcoin in recent days after it hit fresh highs for the year late last week. There’s been no shortage of crypto newsflow but the excitement around an ETF may well be what’s pulled traders back in. Either way, it promises to be an intriguing and potentially volatile second half to the year as we await the outcome of that and the action brought against various exchanges from the SEC. ​

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.