The week ahead is expected to be a volatile one as tensions between the US and Iran escalate.
Much of the focus will be on the G20 meeting which will see an extended meeting between President Trump and Xi of China. Trade talks have somewhat stalled of late with both sides accusing the other of backtracking. Much hype has been created over the prospect of the 2 leaders smoothing things out this weekend.
President Trump has other concerns on his mind this week though. Tensions have been on the rise with Iran following the downing of a US drone last week. The harsh rhetoric between the 2 has allowed the price of oil to continue on an upward trajectory, also supported by the softer US dollar created by the Fed’s last monetary policy announcement. It’s likely the buck remains under pressure this week following the Federal Reserve’s confirmation that rate hikes are now back on the agenda.
The UK will not be immune from this week’s volatility and will indeed provide its own dose. The Tory party leadership race now gets into full swing with the last two candidates, Johnson and Hunt set to begin battle. Data-wise it will be a quiet one with the only release of real importance being the Q1 GDP report scheduled for Friday.
Elsewhere, Eurozone inflation numbers will be on tap as well as US durable goods.
Written by Viv Savani. 8:31am, June 24th 2019
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