- June 12, 2018
- Posted by: Joey Benedid
- Category: Market News
With the long awaited meeting between Trump and Kim Jung Un done, markets are in a wait-and-see mode as they wait for concrete evidence that the involved parties will actually take steps to achieve what they have promised. The two nations signed a declaration that North Korea would work towards complete denuclearization of the Korean Peninsula while the US would provide security guarantees to North Korea. Investors will now focus on the FOMC Rate Decision tomorrow, with expectations of a 25pts hike. EUR is flat today, being supported from yesterday’s news that Italy would not be leaving the EU. The ECB is widely expected to signal intentions to start easing their bond purchasing program on Thursday. GBP is up slightly today with the hopes of a Brexit bill going through Parliament, although Theresa May is facing resistance as her Justice Minister has pulled his support, creating uncertainty within Parliament.
It is a busy week for Central Banks and policy votes, but for other primary releases the calendar has US CPI (2.7% vs 2.5%) this morning at 8:30am. In addition to tomorrow’s FOMC Rate Decision, the UK also has CPI (2.4% vs 2.4%). Short term support and resistance remains 1.2837 and 1.3046 respectively as we have continued to trade with range. RSI is at 58 and the 200-day moving average resides at 1.2676.