Key Data To Determine Euro and Sterling Price This Week

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1. Key Data To Determine Euro and Sterling Price This Week
The currency markets are in for a busy week as the USD rally seems unwilling to abate. EUR investors will be looking to the flash reading of May’s PMIs for the Eurozone. The EUR has been battling against a bullish dollar and political uncertainty in Italy, which have caused it to tumble to near 5-month lows. Both the manufacturing and services PMIs are forecast to have slipped marginally. Another key release for the euro will be Friday’s Ifo business confidence gauge out of Germany. The Ifo business climate index is also forecast to have deteriorated further in May. The UK will also see some major releases this week with inflation, retail sales and GDP indicators on the agenda. It should be noted that another weaker-than-expected inflation reading next week would further dent expectations of future BoE rate hikes and push the GBP pairs lower. You can find all release dates and times for all events scheduled this week on BDSwiss Economic Calendar.*

2. Oil Prices Higher As China and US Put Trade War “On Hold”
The U.S. trade war with China is officially “on hold” after the two nations agreed to work on a wider trade agreement. The news helped lift oil prices on Monday, with U.S. West Texas Intermediate (USOIL) adding 47 cents, or 0.7 percent, from its last settlement as of 6:43 GMT. Production cuts led by the Organization of the Petroleum Exporting Countries (OPEC), a plunging output in crisis-struck Venezuela and looming U.S. sanctions against major oil producer Iran have also contributed in the recent oil rally that push prices over the $70 margin.**

3. Gold Slips On Strong Dollar and a “Halted” Trade War
Gold prices slipped in early Monday trading, as US Treasury Secretary said trade war with China is currently ‘on hold’. Demand for safe-haven assets eased after the U.S. trade war with China was put officially ‘on hold’. A strong USD also made the dollar denominated metal more expensive to buy and hold. The dollar rose to a five month-high against a basket of currencies on Monday, after Mnuchin’s comments boosted risk sentiment amid hopes for an easing of trade tensions between the world’s two biggest economies. The price of gold (XAUUSD) is currently trading below the psychologically important$1,300 per ounce level for the first time since late December.***

You can find and trade all of the above mentioned equities and commodities on BDSwiss Forex/CFD platforms.

*Source: CNBC

**Source: Investing

***Source: Reuters

Upcoming Earnings Reports This Week:
23/5/2018 – Tiffany & Co. (#TIF) to report pre-market
24/5/2018 – Tate & Lyle, PLC. (#TATYF) to report pre-market

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