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Forex Markets Support Ahead of OPEC & ECB


forex markets

Forex markets may experience untold levels of volatility during trading this Thursday as the explosive combination of critical data releases encourages anxious investors to systematically offload and reload positions.

This volatility can be displayed in global stocks that have frantically swung between losses and gains this week with prices potentially respecting this pattern as the OPEC meeting weighs on risk appetite. European equities were left depressed during forex markets trading on Wednesday and could be set for further declines following the mounting fears over the immeasurable impacts of a Brexit to the Eurozone.

Although Wall Street clawed back previous losses after the positive ISM Manufacturing PMI boosted expectations of a US rate hike in Q2, bulls could be cut short if Friday’s NFP fails to meet expectations. While the short term gains in the stock markets could be commended by the bulls, prices may be destined to decline if ECB doves and an OPEC failure materialize before the end of today.

Brexit fears trigger volatility

Sterling volatility skyrocketed to gravity defying levels during trading this week following the stealth attack from the Brexit poll that rekindled fears over the UK leaving the European Union. Although Manufacturing data exceeded expectations and slightly alleviated concerns over the state of the UK economy, this was easily overshadowed by the Brexit fears which encouraged bears to pounce. Sentiment remains bearish towards the pound and with volatility set to intensify as financial heavyweights discuss the pros/cons of a Brexit, investor attraction could be haunted further.

Bank of England Mark Carney will be speaking today and may likely repeat his “Bremain” mantra which could compound to forex markets volatility. Although the results and impacts of E.U referendum vote remain uncertain, it is certain that the uncertainty leaves investors anxious, consequently punishing the pound further.


Rev Francis Waive

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