This week does not include many important news announcements from the US, however the calendar is full of FOMC member speeches in which the market will pay special focus on any comments about when to expect the next rate hike. The market will also be driven by Brexit poll developments as well as G7 communication towards the end of the week. Today, EU and US PMI numbers stand out in a very thin calendar.
Stocks: Equities are mixed so far this Monday. While most Asian bourses are positive, Japans Nikkei is losing 1%. Overnight, Japanese trade data, revealed the 7th consecutive month of falling exports, indicating the threats facing the Japanese economy from the stronger JPY this year.
Oil and GOLD: Crude oil has remained at $48, while BRT is trading lower at $48.59. Prices have dropped as investors locked in profits from the 2 week rally that was ignited on supply concerns. Brent futures prices are up by roughly 85% since briefly dropping below $30 a barrel in mid-February, despite the collapse of talks at a Doha summit in April aimed at achieving a production freeze among OPEC and Non-OPEC producers. OPEC meets on June 2 in Vienna and may discuss the freeze initiative again. GOLD is steady at $1254 after being sold off on USD strength last week.
Currencies: USD was the strongest currency of this month, followed by GBP as Brexit worries subside, while commodity currencies are the weakest. Overnight, currency markets were very stable, with notable exception being JPY which held USD under 110.
Important note: These technical and research reports are provided to easyMarkets® as a subscriber of third party providers. They are provided for informative purposes only and in no way can they be considered as a recommendation by easyMarkets® to you to engage in any trade. Hence, easyMarkets® shall not be held responsible for any outcome of trading decisions, in regards with these reports or similar reports. You hereby acknowledge that using the information entailed in these reports is at your sole responsibility and you will have no claims with regards to these reports against easyMarkets®. If you do not agree to this, you are strongly advised not to use these reports.
easyMarkets Pty Ltd (AFSL 246566 ABN 73107184510) makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. easyMarkets recommends that you read the Regulation Page, The Product Disclosure Statement, the Terms and Conditions and the Financial Services Guide before making any decision concerning easyMarkets’ products.