Bearish sentiment is dominating the markets as stocks, oils and metals are enduring large declines.
The economic calendar today has seen few important economic events, except the final reading data for GDP in the United States, where the economy grew by 1.4% in the first quarter on an annualized basis. Personal consumption figures were revised up to 1.1%, while investment growth was revised down slightly.
The ECB Forum on Central Banks concluded today with discussions on investment and growth in developed economies. Mark Carney, the governor of the BOE, pushed the pound
The second day of the ECB's Central Bank Forum, which is being held this year on investment and growth in developed economies, kicked off today. Russia's largest oil producer, Rosneft, reported that its servers had been attacked, causing the company's computers to be disrupted.
The British pound fell sharply during the day as David Davis, minister in charge of negotiations with the European Union, arrived in Brussels to start the first days of formal talks for Brexit. The GBPUSD hit its lowest level since June 15 at 1.2723.
On the economic agenda today, the Federal Reserve meeting raised interest rates as expected to 1.25%, while maintaining expectations of a further rise this year, indicating that the labor market will continue to improve and the economy grew at an moderate pace and that the interest rate will be determined by economic data.
The markets were relatively quiet during the day and did not witness many notable moves as markets awaited the FOMC meeting to announce the rate decision. The markets have priced to raise interest rates by 94%. Markets will be waiting for comments by Janet Yellen, Federal Reserve Governor at the press conference, and to get more information about the US Federal Reserve cutting its balance sheet by about 4.5$ trillion later this year.
The economic calendar was not full of major economic events today, and the markets saw some notable moves as Sterling Pound continued to face further downward pressure, especially after Prime Minister Teresa May failed to win a majority in last Thursday's election. She is trying to make a coalition With the DUP to form a new government. Sterling fell against most of its rivals, hitting its lowest level against the US dollar for nearly a month at 1.2638.
After a week full of major events, this week comes with a lot of data and events. More than one central bank will be meeting this week to decide on interest rates, but most of the attention will be directed towards the FOMC with the possibility of a rate hike during this meeting. Next to these meetings will be some important economic data that will also play a role in market movements.
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