What Can we expect this week?

Good morning, let me recap what happened yesterday in the markets. The Sterling Pound fell even more against the USD and the EUR. The growing uncertainty after the Brexit decision is hitting the markets. In addition, Cameron’s resignation doesn´t help at all, at least he will be in the office till October. Chancellor George Osborne said this morning that the UK would have to cut spending and raise taxes.

Europe’s politicians are working hard to address the current situation. By the way, the conservative party (PP) has won most seats in Spain's parliamentary election but is short of a majority, which adds more political uncertainty. Italy is using Brexit as a pretext to unleash a €40 billion ($44 billion) bailout of its insolvent banks. All of these issues are reflected in the EUR/USD.

GBP/USD Futures

GBP/USD Futures, Monthly, 27/06/2016

EUR/GBP

EUR/GBP Futures, Daily, 27/06/2016

EUR/USD Futures

EUR/USD Future, Daily, 27/06/2016

Economic calendar

The  most important macroeconomic release of the week is the US GDP this afternoon (13:30 UK time). It’s expected to be around 1%. After that. At 15:00 we will see the Consumer Confidence, I expect it strong.

    Wednesday:

·                                 -German CPI

·                                 -US Pending Home Sales

    Thursday:

·                                 -German Retail Sales

·                                -German Unemployment

·                                - UK GDP

·                                -European CPI

·                                -Canadian GDP

    Friday:

·                                -China PMI

·         -                      -German Manufacturing PMI

·                                - UK Manufacturing PMI

·                                -US ISM Manufaturing PMI

What I expect?

It’s only my opinion, don´t take it as a financial advice. I expect a little rebound today, but I think the markets will look for lows until the negotiations and the economic measures are clear.