Talking Points:
- It’s a holiday in the US and UK, but European markets are on the move as it appears as though we’re heading for another round of elections in Italy. This means that we could see snap elections out of two of the most pivotal nations in Europe at some point this summer, with caretaker governments currently managing both Spain and Italy. This could keep Euro[1] markets volatile in the near-term.
- After today, this week’s economic calendar has a heavy US focus, with high-impact items on the docket for every day of this week. But – with that said, ongoing political risk in Europe could overshadow this outlay, as markets attempt to price in risk around new themes of political uncertainty. We looked at reversal setups in the DAX[2] and FTSE[3] in this week’s equities forecast; and we looked at the short-side of the Euro in our FX Setups for this week.
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[4]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[5]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[6].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[7].
Euro Politics Steals the Spotlight
The big push point for this week is coming from continued political risk in Southern Europe, and it now looks like we may have another round of elections in Italy at some point
