Trump-Kim summit did not shock the markets
German ZEW expectation index drops to the lowest levels since 2012
Investor focus shifts to the US inflation report as FOMC starts its meeting
Despite signed agreement the long-awaited meeting between the US and North Korean leaders did not translate into any particular market reaction. However, this is not the end for this week. FOMC starts its meeting today causing investors to pay even bigger attention to today’s US inflation report than usual. The FOMC decision is going to be announced tomorrow. Meanwhile, Scandinavian currencies outperform their major peers. On the other hand, CAD and JPY are the weakest out of the G10 group.
Apple has taken a bold stance on the digital assets as of late. The company has issued a new App Store guidelines during its Worldwide Developers Conference last week. According to the new framework cryptocurrency mining apps will be banned on devices with iOS system including Mac.
The UK economy saw slower than previously wage growth in three months ended in April suggesting there could be still some spare capacity left. On the flip side, employment momentum remained robust, and the unemployment rate stayed at its lowest point since 1975.
We saw a jolt to the upside across European equities immediately after the opening. Nevertheless, buoyancy has disappeared to some extent since then even as the Trump-Kim summit ended with some promising results.
Apart from the summit in Singapore we were offered soft indicators from Australia from NAB. Both business conditions as well as confidence deteriorated in May falling to 15 and 6 from 21 and 10 respectively. Anyway, the Australian dollar keeps trading almost flat in the morning.
The Federal Reserve June meeting kicks off today, and we’ll be offered a bunch of materials tomorrow evening. In the light of quite high expectations related to this event it seems that the US dollar might be subject to a possible retreat afterwards, but before it may happen the inflation report for May will be released.