CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Major markets consolidate ahead of crucial EU Recovery Fund discussions

Market Overview

Major market look ponderous this morning as the dust settles on yesterday’s dollar rebound and edge of risk aversion. Traders looking at their charts will see how these moves have been counter to recent trends. The dollar remains on a weakening path (as a safe haven), whilst recent updates on COVID-19 vaccines have encouraged a more positive risk bias to take hold. However, there is still an uneasy tone to relations between the US and China over a variety of issues (Phase One trade deal, Huawei, Hong Kong, interests in the South China Sea) which is holding back a sustainable move into risk. Furthermore, ever rising COVID infections (primarily in the US) add weight to the shackles too. Despite this though, in the coming days the EU Summit to discuss the EU Recovery Fund could be a game changer for sentiment, at least for the near term. If the EU leaders can find common ground to make progress in moves towards agreeing on the fund, there would be a narrowing of yield spreads, a supportive outlook for the euro, and European equities would certainly feel the benefit too. Major markets are all but flat this morning ahead of the summit, and we will not see the real impact until Monday morning. Later into today’s session, the US confidence gauge, Michigan Sentiment will take focus as it is for July and begins to account for the rising infection rates and threats of renewed lockdown.