Market -Weekly Outlook Jun 24 2019


Last week, the US Dollar fell after the Federal Reserve held the Federal Funds rate at 2.25% to 2.50% as expected. But fears that the Federal Reserve will cut interest rates in the future, put the dollar under pressure against major currencies.

In the week ahead, market watchers will be looking to a meeting between U.S. President Donald Trump and China’s President Xi at the G20 summit in Japan next Friday. However; The meeting is likely to discuss the rearrangement of trade between the United States and China and try to reach an agreement ending the war between them. Therefore; volatility is expected.

Let’s take a quick look at the most important events that are likely to affect the market this week:

1- G20 Summit 

On the 28th (Friday) and 29th (Saturday) of June 2019, the leaders of the G20 will gather in Osaka as Japan hosts its first ever G20 Summit.

Chinese President Xi Jinping will attend the G-20 summit in Japan. The official Xinhua news agency reported Sunday. He is expected to hold a meeting with US president  Donald Trump.

However; US President Donald Trump said Tuesday. He had a good phone conversation with Chinese President Xi Jinping and would hold a “lengthy meeting” next week at the G20 summit”.

“We have had a very good phone conversation with Chinese President Xi,” Trump wrote on Twitter, “We will have a long meeting next week at the G20 summit in Japan”.

In other words, Trump’s comments have a more optimistic tone for his expected meeting with Xi. As a result; The question here is whether the two largest economies in the world will be able to resolve their differences and end a heated trade dispute. Or things will stay the same.

In addition to discussing the trade dispute. Xii and Trump are expected to discuss US efforts to persuade North Korea to give up its nuclear weapons.

Meanwhile, during the Summit meeting. The Finance Ministers and Central Bank Governors’ Meeting. The Foreign Ministers’ Meeting and other ministerial meetings will also be held at eight different locations throughout Japan.

In conclusion, it’s difficult to predict the impact on the markets at the moment. But before the summit a day or two. There may leak news or rumors may clarify the picture, even a little?! stay tuned…

2- U.S Economic Data
  • CB Consumer Confidence (Jun). Tuesday at 12:30 GMT.
  • Fed Chair Powell Speaks. Tuesday at 17:00 GMT.
  • Core Durable Goods Orders (MoM) (May). Wednesday at 12:30 GMT.
  • Final GDP q/q. Thursday at 12:30 GMT.
3- Euro Zone Economic Data
  • German Ifo Business Climate Index. Monday at 08:00 GMT.
  • Euro Zone Inflation. Friday at 09:00 GMT.
4- U.K Economic Data
  • BoE Gov Carney Speaks. Wednesday at 09:15 GMT.
  • Inflation Report Hearings. Wednesday at 09:15 GMT.
  • Final GDP q/q. Friday at 08:30 GMT.
5- Other Economic Data
  • RBNZ Interest Rate Decision. Wednesday at 02:00 GMT.
  • Canada GDP m/m. Friday at 12:30 GMT.