US and Asian stock market were in risk-off mode recently as central bank decisions are approaching and despite impressive growth numbers from the US economy. The dollar index is falling while US treasuries are declining following a recent rise on Friday.
The US stock market closed lower on Friday due to a global sell-off in technology shares. The NASDAQ fell by -1.46%, S&P 500 closed at -0.66% while the Dow declined by -0.30%. The same is true for Asian stocks, as the Bank of Japan is holding its meeting tomorrow. The Nikkei 225 closed on Monday at -0.74% and the Hong Kong Hang Seng closed slightly lower at -0.25% whereas the Korean KOSPI closed flat (-0.06%).
European stocks are expected to trade along the same range, with confidence indicators expected to print downward while German July CPI figures to remain flat y/y and higher m/m (expected: 0.40% vs prior: 0.10%).
The EUR/USD is currently bouncing off from 1.1643 low (26/07/2018 low), trading above 16.70 and heading along 1.1680. The pair could be turning down at 1.1650 in late afternoon.
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By Vincent Mivelaz