Trump pulls out of peace summit

25 May, 2018

The US President dominated headlines and moved the market again yesterday when he wrote a letter to the North Korean Leader announcing his decision to pull out of the upcoming summit. The market reacted violently with traders seeking safety and sending stocks lower and the USD falling with USDJPY falling from 109.750 to 108.950 but the move faded into the US close and in the Asian session overnight. EURUSD rallied to 1.17500 and GBPUSD rallied to 1.34140 but have moved lower since. Gold tested resistance at the 1305.50 area while Oil fell from $71.68 to $70.50 support. The beleaguered USDTRY fell to lows at 4.55693 yesterday as the CBRT emergency hiked lending rates by 300 bps to counter the currency moves but moved higher with the dollar to 4.80556. It is currently trading around 4.78444. The CBRT is due to meet again on the 7th of June.

UK Retail Sales (YoY) (Apr) was 1.4% against an expected 0.1% from 1.1% previously which was revised up to 1.3%. Retail Sales (MoM) (Apr) was 1.6% against an expected 0.7% from a prior -1.2% which was revised up to -1.1%. Retail Sales ex-Fuel (YoY) (Apr) was 1.5% against an expected 0.1% from 1.1% previously which was revised up to 1.3%. Retail Sales ex-Fuel (MoM) (Apr) was 1.3% versus an expected 0.4% against a prior -0.5%. Yearly figures were expected to show a decrease but beat the consensus and exceeded last month’s readings. The monthly numbers exceeded expectations and show a jump in sales. This is a volatile data set but it does give a view on consumer spending. GBPUSD moved higher from 1.33838 to 1.34210 following this data release.

US Continuing Jobless Claims (May 11) were 1.741M versus an expected 1.754M against 1.707M previously which was revised up to 1.712M. Initial Jobless Claims (May 18) were 234K versus an expected 220K against 222K previously which was revised up to 223K. This data is showing an increase in the number of new claims.

US House Price Index (MoM) (Feb) was 0.1% against an expected 0.5% from 0.6% previously. This data slipped lower again after a strong improvement in the March reading.

US Existing Home Sales (MoM) (Mar) were 5.46M versus an expected 5.57M against 5.60M previously. After reaching a seven year high in November at 5.81M, this data point had slipped lower over the following months signalling a little softness in the sector but recovered somewhat last month and in March. That recovery stalled with this reading. USDJPY initially moved higher from 109.558 to 109.723 as the jobs data hit but dropped to a low of 108.948 after housing data came in weaker coupled with the US/North Korea news.


Source  
Americans pass pandemic holiday in parks as death toll nears 10000025 May, 2020  

Americans sunbathed on beaches, fished from boats and strolled on boardwalks this holiday weekend, but the occasional person wearing a mask was...

New U.S. House coronavirus bill contains $3 trillion plus in aid13 May, 2020  

The Democratic-led U.S. House of Representatives unveiled on Tuesday a sweeping new coronavirus bill with more than $3 trillion in assistance to states...

The phantom threat of inflation and fears of the virus second wave12 May, 2020  

Asian indices are losing about 1% on Tuesday morning while futures for European and US indices point to open in the red. This is associated...


UK could start lifting coronavirus lockdown measures7 May, 2020  

Britain now has the highest Covid-19 death toll in Europe, according to the latest official figures, climbing past Italy which, alongside Spain, has been among the...

Scientists Create Antibody That Defeats Coronavirus in Lab5 May, 2020  

Scientists created a monoclonal antibody that can defeat the new coronavirus in the lab, an early but promising step in efforts to find treatments and curb...

Saving more money than ever is destroying the economy4 May, 2020  

The COVID-19 pandemic is hurting many spheres of the economy. To slow the spread of the virus, the government told people to stay at home. Tons of businesses...


US weekly jobless claims hit 3.84 million1 May, 2020  

First-time filings for unemployment insurance hit 3.84 million last week as the wave of economic pain continues, though the worst appears to be in the past, according...

These countries effectively contained the coronavirus28 Apr, 2020  

Countries like Australia, New Zealand and South Korea are among the few which managed to buck the trend and put a lid on the coronavirus outbreak, at least for now...

Europe Is Taking a Harder Look at China After Virus Suspicions20 Apr, 2020  

European governments struggling with the fallout from the Covid-19 pandemic are hardening their positions toward China as suspicions grow over...