Despite a slightly bearish bias in Wall Street since last Friday, the fact of the matter is that investors are on the sidelines, this time waiting for the flood of central bank related news that will spawn tomorrow and Wednesday. With two days of the FED chief, Jerome Powell, semi-annual testimony at the U.S Congress, as well as the minutes from the FED and ECB last meetings.
Four occasions that could produce a shift in sentiment for the Bulls or the Bears, although much more is at stake in FED related news, since it’s the only one that can make the biggest “surprise”, while from the ECB, investors are only saying, “how much”, meaning, what will be size of its next assets buying program, within a new quantitative easing round. In any case volume should be lighter than usual, which could favour more spikes of volatility, so stay sharp out there.
Photo by Renan Kamikoga.
