The bullish euphoria finally fades during the opening Asian hours. That is what happens when trades become overcrowded and when trades do not represent the current fundamentals but work exclusively on future expectations. Recent bullish euphoria had to do with the Trump’s victory and the expectations that the huge infrastructure plans that he will follow will boost USD. But all the above at the moment remain plans as Trump has not even entered the white house.
We are going to see ahead many legal challenges regarding the recent Brexit vote. In any case no one can predict with certainty if Britain remain in Europe or not. The future of UK in Europe depends on many different factors, however the most important is that if Europe within one or two years shows signs of economic recovery and political unity then it is pretty certain that UK will rethink to leave Europe.
Markets continue to overestimate probabilities for an OPEC deal, we do not know if OPEC meetings to freeze productions becomes a deal. Common sense reveals that the more members involved in order to reach an agreement the more difficult it will be to achieve the agreement and the deal can become even more difficult if between the negotiators there are geopolitical, historic, diplomatic disputes.
Daily Key points:
• Fillon wins French Conservative primary
• ECB Cœuré: Greece’s bailout performance review progressing well, timely conclusion needed
Daily Economic calendar:
|Europe||ECB President Draghi Speaks||High||n/a||n/a||All Indices||17:00|