New Week Starts With Geo-Political Challenges
Markets will be watched closely as investors react to this weekend’s military action by the U.S, U.K and France in Syria. Global equities were mixed late last week, but maintained a positive groundwork. Forex has been tranquil, the Pound remains strong versus the U.S Dollar, while the Euro has languished. The weaker Yen may signal risk appetite in Asia.
Day of Rest before Trading Starts is Good, Broad Market Reaction Anticipated
Proving again that geo-politics can turn on a dime. The U.S, along with the U.K and France, defied Russia on early Saturday and launched an attack on Syrian strategic positions. The broad markets have not had a chance to react to the military action yet. And while some volatility can certainly be expected, the day’s rest investors get before re-entering their offices tomorrow may provide some tranquility to the situation. Global markets experienced relatively calm trading before going into the weekend. Wall Street did slump slightly, but Europe was positive and Asia turned in a mixed session. Equities and forex will be eyed vigilantly as Asian markets open tomorrow, but investors have also grown accustomed to turbulence and with a day to contemplate the larger scheme of things, the markets may be calmer than anticipated.
Pound Remains Strong versus U.S Dollar, Yen Signals Risk Appetite in Asia
China’s GDP numbers early this Tuesday will be a focal point for traders. However, President Trump’s sudden reversal late last week and positive words about the potential of a trade agreement with China and the TPP has already provided a positive ground to build from. Forex has remained rather range bound. The Euro has maintained its pace and starts the week near 1.230 versus the U.S Dollar. European data this week will be limited, but in a week and a half the ECB will release its newest thoughts regarding monetary policy. The U.K will produce Retail Sales and inflation numbers via the Consumer Price Index this week. The Pound has been relatively strong against the U.S Dollar and is near the 1.4240 juncture as the week begins. The Yen has stayed slightly weaker and is around the 107.30 level, which may signal risk appetite in Asia is building.
Gold & Crude Oil near Lofty Values, Will Risk Adverse Trades Slow?
While Gold and Crude Oil prices jumped last week on risk adverse trading, both commodities remain near important resistance levels. Gold’s value around 1344.00 is certain to be volatile upon the markets opening early on Monday due to the political circumstances. But the question brave short tem speculators may ask is if the worst of the news has now been digested. And if so, will Gold and Crude Oil come off their loftier values soon?
Important Growth Data Coming from China, U.K Inflation Numbers Mid-Week
Core Retail Sales will come from the U.S on Monday at 12:30 GMT. China on Tuesday will release its Gross Domestic Product figures early at 2:00 GMT. The U.K will issue its Consumer Price Index data on Wednesday at 8:30 GMT. The Philly Fed Manufacturing Index will come from the States on Thursday at 12:30. And wrapping up the week will be the Consumer Price Index numbers from Canada at 12:30 GMT.
- Monday, 12:30 PM, U.S, Core Retail Sales
- Tuesday, 2:00 AM GMT, China, Gross Domestic Product
- Wednesday, 8:30 AM GMT, U.K, Consumer Price Index
- Thursday, 12:30 PM GMT, U.S, Philly Fed Manufacturing Index
- Friday, 12:30 PM GMT, Canada, Consumer Price Index