While central banks dominated much of the last week, Investors appeared far more concerned with events on the Korean peninsular where North Korea – fresh of having tested a hydrogen bomb – was reportedly about to mark its founding day holiday with another test. Past tests have triggered safe haven flows in the markets and it seems the anticipation of another was enough to leave investors in a risk averse mood.
As it was, the weekend passed with nothing more than a celebration in North Korea, to the relief of investors, prompting an unwinding of some of last week’s trades and a refocus on this week’s key events. Last week may have been far more interesting from a central bank perspective, with the ECBs dovish message falling on deaf ears and the Bank of Canada raising interest rates, the Bank of England decision this week is unlikely to be a dull affair. Especially as it is preceded by inflation and jobs data in the days before.
In this week’s video, Senior Market Analyst Craig Erlam discusses all of this and the other weeks key events. He also gives his analysis on GBPUSD, EURUSD, EURGBP, AUDUSD, USDCAD, GBPCAD, NZDUSD, USDJPY, GBPJPY and EURJPY.
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Relief Rally Seen After North Korea Celebrations
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