The UN Security Council unanimously imposed new sanctions on North Korea on Saturday, enhancing the geopolitical tensions and putting a strain on US/China trade relations. The markets have yet to react but for sure this is being watched. This week’s focus will be on OPEC, RBNZ, Fedspeak & US CPI.
USD: with little data due, Fedspeak will take up the baton with Bullard and Kashkari. Friday’s US CPI will be the only serious market mover because only subdued inflation is standing in the way of another rate hike.
EUR: light week for the EU as well with only Ger Trade data (Tue) and Ger inflation (Fri).
GBP: only Industrial Production and Trade Balance (Thur).
CAD: OPEC and non-OPEC producers will meet in Abu Dhabi to discuss compliance issues, but the event will be closely monitored by energy traders and without any meaningful data, CAD will likely move based on Crude.
AsiaPac: lots of China data out this week with House Prices (Mon), trade data (Tue), CPI and PPI (Wed). Australia releases ANZ Job Ads (Mon) followed by NAB Business Survey (Tue). The big event downunder will be the RBNZ (Wed).
Going into the week I remain bullish on Dow & Copper, and I have turned bearish on GBP & NZD.
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