It’s been an­other tur­bu­lent week, thanks to Trump

Financial Mirror (Cyprus) - - FRONT PAGE -

losses as ex­pec­ta­tions con­tin­ued to fade over the Bank of Eng­land rais­ing UK in­ter­est rates. It is be­com­ing clear that signs of cool­ing in­fla­tion­ary pres­sures could force the BoE to con­tinue de­lay­ing mone­tary pol­icy nor­mal­iza­tion this year. With the Pound more con­cerned with Brexit un­cer­tainty and fad­ing rate hike hopes, fur­ther down­side is on the cards.

Fo­cus­ing on com­modi­ties, Gold was bullish this week thanks to un­cer­tainty over US - China trade talks. With a soft­en­ing Dol­lar sup­port­ing the up­side, the yel­low metal was able to break above $1300.

With re­gards to Crude Oil, the prospect of OPEC and Russia eas­ing sup­ply curbs has re­sulted in down­side losses. Price ac­tion sug­gests that bulls are strug­gling to find sup­port from geopo­lit­i­cal risk fac­tors to sus­tain the cur­rent rally.

The main talk­ing point this week was when Don­ald Trump called off next month’s sum­mit with North Korean leader Kim Jong-Un. How­ever, North Korea’s con­cil­ia­tory re­sponse to the abrupt can­cel­la­tion eased in­vestor jit­ters.

Fo­cus­ing on the upcoming trad­ing week, much at­ten­tion will be di­rected to­wards the on­go­ing US - North Korea de­vel­op­ments.

Signs of a de-es­ca­la­tion of ten­sions be­tween both sides could sup­port risk sen­ti­ment. Much at­ten­tion will be di­rect to­wards the pend­ing US GDP and NFP re­ports which should of­fer ad­di­tional in­sight into the health of the US econ­omy. It will also be in­ter­est­ing to see what ma­jor lead­ers dis­cuss dur­ing the G7 meet­ing in Bri­tish Columbia.

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