Over in the UK, there is a feeling of a bit of relief from a ruling party which has only brought more misery for the UK over the last 10 years and traders are expecting more positive reaction in the UK’S FTSE 100 price action. Basically, there is some hope once again for the UK’s economy as the Labour Party wins a landslide victory. The change in leadership from the Conservative Party to the Labour Party after a decade has made investors optimistic that finally we will have someone who can actually heal some of the self-inflicting injuries like Brexit and bring the economy back on track. This is due to the fact that the Conservative Party primarily enriched the wealthy, while the rest of the nation saw their disposable income rapidly diminishing. There is also hope that the UK will become more truly independent, potentially refraining from participating in wars initiated by other countries like the US.
You should monitor the property and housing sectors for significant movements, and the currency market has also seen a positive shift following the UK’s election results.
Over In the US, traders will return after their bank holidays without being nervous, as today we will see the most important economic data unfolding in front of our eyes, and that is the US NFP data. So far, the numbers we’ve seen this week haven’t given us enough confidence to believe that today’s number will bring any relief. However, we believe we are in a situation akin to a deadlock, where negative news can yield positive outcomes, as most traders believe the Fed would need to take further action if the data deteriorates further.
Gold price action is going to be the most interesting one to watch today. If the data fails to impress the market, we would expect significant moves in the dollar index to the downside which means gold price could potentially move higher.
