Summary:

  • Swedish krone surges following release of Riksbank’s minutes

  • Markets await Trump’s decision on the Nuclear Deal

  • S&P 500 futures point for a lower US opening

Tuesday is all about oil as US President Donald Trump tweeted yesterday that he will announce his decision on the Iranian Deal in the evening. European equities underperform with UK FTSE 100 being the only major index able to remain within close vicinity of previous close. AUD is the weakest currency in the G10 basket after disappointing retail sales data was released overnight. On the other hand, SEK outperforms its major peers being boosted by the Riksbank’s minutes. On the commodity front oil posts over 1% decline in terms of both, Brent and WTI. Precious metals retreat on the back of USD strengthening.

The Swedish krona has been hit hard lately irrespective of what a currency (USD, EUR) we are talking about. However, an inflection point could be close as the SEK has reached unprecedented levels especially against the common currency – the pair was never seen visibly above a 10.00 handle except for the GFC a decade ago.

We wrote about Warren Buffett’s harsh comments regarding Bitcoin yesterday, and today we are going to mention another prominent businessman’s comments – Bill Gates. Microsoft co-founder said in an interview with CNBC on Monday that he would bet against Bitcoin if there would be an easy way to do so underlining his sceptical approach to virtual currencies.

Yesterday we wrote about the Italian government talks organized by the President Sergio Mattarella whose aim was to form a technocratic government that will be able to reform electoral law and pass the 2019 budget. The negotiations has failed as neither Five Star’s Di Maio, nor League’s Salvini agreed to form a government with a non partisan Prime Minister.

US President Donald Trump tweeted yesterday it would announce his decision with regard to the Iran nuclear agreement on Tuesday encouraging some oil investors to cash in on their recent longs. The decision is to be released at 7:00 pm BST, and even as a majority of market participants expects Trump is going to scrap the accord and reimpose new sanctions against the country oil prices pared their prior gains.

Taking a look at the Tuesday’s macroeconomic calendar one could say that it is going to be a rather calm day. However, as Donald Trump tweeted that he will announce his decision regarding Nuclear Deal on Tuesday evening we can expect volatility to be there.