A Week in the Market (28.06 – 04.07): End of June Will Be Hot | R Blog
The final days of June and the beginning of July are promising to be dynamic: we have a ministerial meeting of OPEC+, a flow of statistics, and comments of monetary authorities. The market will simply have no time for reflection.
Brent: all eyes on OPEC+
On July 1st, OPEC+ will gather or a meeting and attract a lot of attention: the market is experiencing another supply shortage, and the politicians are likely to agree on additional extension of production for certain members. Brent might keep growing.
JPY: the yen starts growing
This week, Japan is publishing a large block of statistics, from retail sales to the unemployment rate, industrial production, and the BoJ forecasts on inflation and GDP dynamics. The market is favorable to the yen and is now standing on its side.
Central banks: work must go on
This week, meetings are scheduled in the Central banks of Columbia and Switzerland. Interest rates are not expected to change; in Sweden, it remains at zero. Capital markets are craving for monetary authorities all over the world to stay consistent: the fewer surges they make, the less they change moods, the better for risky assets.
EUR: Lagarde gives positive evaluations to the economy
This week, the head of the European Central bank Christine Lagarde will give commentaries several times: first at the Brussels Economic Forum, then just delivering a speech. Investors will remain keen on the overall tone of the estimations to remain positive, and it will be good for the EUR.
USD: the labor market again
As always at the beginning of the month, the USA is preparing to publish the labor market statistics. The NFP value in June might have grown by 700 thousand, which is quite good, and the unemployment rate might have stabilized at 5.6%. All this is supportive for the USD.