Busy week which should see significant volatility…
The week ahead poses a number of challenges to a range of currencies. There’s something for everyone, from interest rate decisions to employment reports to monthly PMI numbers. We even have the official state visit of President Donald Trump to the UK.
Starting with the UK, this week will no doubt be a colourful one. On the data front we kick off with the usual monthly set of PMI figures. The numbers have not been impressive of late and it’s become clear the economy is continuing to struggle with the heightened uncertainty, following 2 months with very little progress on offer in respect to Brexit. Outside of the data and one of the key focuses will be a 3 day state visit from President Trump. He’s not shied away from weighing into the Brexit debate, stating that the UK should leave with no-deal and refuse to pay the divorce bill if the EU do not amend their proposal. Additionally, the following few days will certainly provide further detail on the Tory party leadership election with 13 candidates now in the running.
Elsewhere, US/China trade tensions will play a big part in this week’s trade. Talks have gone sour of late and have resulted in the 2 countries exchanging hostile remarks. The situation has put global stock and debt markets on edge as they await new developments. Further escalation could see markets return to full-volatility mode seen just before Christmas last year. Key data highlights include a European Central Bank monetary policy announcement where Mr Draghi will be expected to sooth markets with dovish rhetoric. The Reserve Bank of Australia are expected to cut rates at their meeting this week. There will also be the monthly employment report from the US on Friday.
Have a good week.
Written by Viv Savani. 8:25am, June 3rd 2019
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