May 20: Bank of England Monetary Policy Committee and Fed Reserve minutes release
With the Bank of England Monetary Policy Committee releasing minutes today, as well as the Federal Reserve Open Market Committee doing the same, expect a lot of volatility. With that being said, we would anticipate seeing quite a bit of action in the US stock markets, as well as the US dollar. The FTSE could also be volatile as well.
Struggled a bit above the 7000 level during the session on Tuesday. However, we feel that going forward the FTSE can be bought via calls, as it should find support below, and most certainly at the 6900 level. We have no interest in buying puts in the FTSE as it should continue to see quite a bit of bullish pressure over the longer term.
Looking at the silver market, we fell rather hard during the session, and with the US dollar possibly moving, this could be a market that turns around quite rapidly. Because of this, we will have to wait to see what the region in the $17 area brings, but so far it looks as if the buyers are starting to step been so we might be tempted start buying calls in this area and aiming for the $17.50 level.
The GBP/USD pair fell to the 1.55 level during the session on Tuesday, an area that should be rather supportive. Because of this, we think that buying will start in this general vicinity, and as a result we have become positive of the British pound again. We will have to see what kind of reaction the MPC announcement brings, but at the end of the day we think there’s quite a bit of support in this general vicinity and therefore the buyers should come back in and assert their control again.
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