The London market outlook highlights euro-dollar movements, US interest-rate developments and quarter-end fund flows as areas of caution. Market participants are closely watching these 3 factors as the focus for the period ahead.
In the London market, euro-dollar movements and US interest-rate developments are expected to be the focus of trading, while attention is also expected to center on the impact of fund flows ahead of quarter-end.
Euro-dollar may fluctuate in either direction depending on US interest-rate developments, and investors are reportedly advised to remain mindful of the course of US interest-rate policy as a risk factor for the market as a whole.
Short-term price movements may become more active as a result of quarter-end flows, and market participants are expected to increase their caution, including with respect to position adjustments.