10 things you must know before trading today


1 July, AtoZForex – As expected, UK GDP remained flat. While the country’s current account showed a wider deficit than forecast. The Bank of England governor Mark Carney signaled a potential rate cut to come soon. Here are 10 things you must know before trading today.

Boris Johnson drops out of Prime minister race

Having been tipped as the next PM following the resignation of David Cameron, the Ex-London Mayor Boris Johnson has announced a pull out of the race to become the next Conservative leader and UK prime minister.

US bank stress test results

The US stress test results showed all 33 banks tested easily breezed through the minimum capital requirement tests. Deutsche bank and Santander were the only two to fall short, therefore making them ineligible to share buybacks or profit repatriation. The banks failed in the aspect of “Broad and substantial weaknesses”. Morgan Stanley was also criticized for some elements in its capital planning process. Some “Material weaknesses” was seen in the banks system.

BOE rate cut imminent

Bank of England governor Mark Carney signaled yesterday that interest rates may be cut in coming months, in an effort to protect the economy in the wake of the shock of Brexit and the chaos engulfing Britain’s political classes. He previously clarified that the bank was ready to activate contingency plans after the Brexit vote.

UK GDP flat

UK’s gross domestic product (GDP) in volume terms was estimated to have increased by 0.4% in Quarter 1. While the current account showed a 32.6B deficit between imported and exported goods, services, income flows, and unilateral transfers during the previous quarter.

Canada GDP at three-month high

After decreasing in February and March, real gross domestic product edged up 0.1% in April. Widespread gains, notably in manufacturing, utilities and the public sector, were largely offset by a significant decline in non-conventional oil extraction.

More from Soros on Brexit

Legendary investor George Soros spoke to the European parliament about the dangers of Brexit and he said the UK’s decision to exit the European Union has “unleashed a crisis” which could be as bad as 2008.

EU to give UK peaceful exit

An initiative was taken by Eurozone members, as 27 states met in Brussels to discuss the outline of their negotiating strategy for Brexit. Eurozone members have agreed on the approach of the actual EU UK divorce talks, in a manner to create a peaceful exit and stability across regions through the process.

UK Manufacturing PMI

The UK Manufacturing PMI is forecast to drop a tad from 50.1 reported last month, to 50. The post-Brexit effect is however not reflected here as confidence in the economy is likely to drop this month.

Tesla in trouble with the Fed?

Included in the list of 10 things you must know before trading today, US federal investigators are looking into an incident where a tractor-trailer cut across a divided highway in front of Tesla’s 2015 Model S, which was in Autopilot mode, and the car failed to activate the brakes. This is the death potentially caused by a self-driving car.

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