Asian equities could see strong gains after a risk-on mood on Wall Street with a cyclical bias with the Dollar paring some of its rallies. The USD pullback was partly a function of Euro strength after reports suggested that the ECB policymakers could be opening the door to a 50bps move at the Thursday meeting.
The cyclical sector in Asia could outperform as there was more optimism for global food supply, with reports stating that Ukraine and Russia are close to a deal to secure safe passage of grain through the Black Sea. For the session ahead, the US earnings season continues with Tesla and Abbott the highlights today, followed by the ECB meeting Thursday, and then all eyes ahead to the FOMC meeting on July 27th. Traders will also be watching the PBoC setting its Loan Prime Rate with desks expecting the benchmark lending rate to be steady at the monthly fixing. It is worth noting that a growing number of traders also expect the mortgage reference rate to be cut due to a recession in the property sector.
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© 2019 High Leverage FX - All Rights Reserved.