Weekly Financial Market events review

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In the beginning of the new business week, which is the 24th one in 2019, we can still see the strengthening of the US dollar (USD). In particular, a stronger appreciation of the USD exchange rate vis-à-vis the rest of the world occurred after the US-Mexico agreement on illegal migration was concluded and the US President Donald Trump canceled all import duties previously imposed on Mexico. This was a very strong positive signal, and on the US stock market, it revoked negative results from the US labor market last month.

During Monday’s European trading morning on June 10, 2019, at 6:48 CET, the US Dollar Currency Index, which compares the value of USD with against the six major world currencies, was around 96.78 points with a daily boost of + 0.25%. Among other things, investors expect the following major events that could affect the trend of global markets:

US Monthly PPI Production

The monthly Producer Price Index (PPI) shows average changes in sales prices made by domestic producers of goods and services compared to the previous month. The index reflects the price changes in the primary markets of the United States from the perspective of the seller and is calculated on the basis of the price difference over the base period (currently it is year 1982). PPI is used to prepare the inflation outlook. Index growth can have a positive effect on dollar quotations. The data of this index is to be released on Monday, June 10, 2019 at 13:30 CET and is expected to decline slightly from 0.2% to 0.1%.

US Monthly Consumer Price Index

The monthly Consumer Price Index (CPI) reflects changes in prices of consumer goods and services in a given month compared to the previous one. The index shows price changes from a consumer perspective. CPI characterizes inflation dynamics. Its growth can have a positive effect on dollar quotations. The value of the index will be published on Wednesday, June 12, 2019 at 13:30 CET and is expected to remain at 0.3%.

Monthly OPEC Report

OPEC Monthly Oil Report monitors global oil market situation. It highlights the main issues and provides an outlook for the development of the oil market for the coming year. The report also provides a detailed analysis of key political and economic events affecting oil prices, oil demand and market supply. Oil prices may rise or fall depending on the data and forecasts published in the report. The OPEC report will be released on Thursday 13 June 2019 at 12:00 CET.

Bank of England Governor’s Speech                                                         

On Friday, June 14, 2019 at 13:55 CET, the Bank of England (BoE) chief Mark Carney will give a speech and outline the future direction of the UK monetary policy in view of the subsequent evolution of interest rates, which will affect the British pound (GBP) and its exchange rate on the foreign exchange market vis-à-vis other world currencies, and in particular against the US dollar (USD) and the euro (EUR).

US Monthly Retail Sales                                                                                        

Monthly Retail Sales reflects a change in US retail sales in the reference month compared to the previous month. The indicator is calculated based on statistics received from 5,000 retail stores of various types and sizes, and the data is then extrapolated to the entire country. The indicator is used to estimate inflation. Its growth may have a positive effect on dollar quotations on Forex. The information will be released on Friday, June 14, 2019 at 13:30 CET and is expected to increase from the current -0.2% to 0.2 percent.

 

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