The aftershock of President Emmanuel Macron calling for a snap election continues to work its way through markets. FX options are pricing in higher volatility and a stronger bias against the common currency as the French yield premium rose by the most on record last week.
In the United States, the narrative of the disinflation story continues to gain credibility among investors again as the consumer, producer and import price indicators for the month of May surprised to the downside.
These two events led to the largest government bond sell-off so far this year and have overshadowed the renewed hawkishness of both the Federal Reserve and European Central Bank. All of this gives us a volatile backdrop going into the Bank of England decision and French and UK general elections in June and July.
Join macro analyst Boris Kovacevic as he breaks down this week’s global market news.
Disclaimer: Converge is Convera’s new podcast that discusses a range of financial services topics. We want to remind our listeners that the information shared on this podcast is for informational purposes only and should not be considered financial advice. Please note that the opinions expressed on Converge are solely the opinions of the host and the guests, not Convera’s.