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The Week Ahead – US Inflation Data, US-China Trade Talks and BoE in Focus

By:
Yaron Mazor
Published: May 7, 2018, 07:57 UTC

The U.S White House has caused an early spark in the Crude Oil market and buyers have put the commodity above 70.00 Dollars. China and the U.S have extended their trade negotiations. Asian markets have been mixed this morning. Inflation data from the U.S will be a key this week.

week ahead

Wall Street Gains but Consistency Sought, China Trade Balance Tomorrow

Although Wall Street produced solid gains on Friday as the Average Hourly Earnings report came in below expectations, the three major Indexes in the States have been rather inconsistent the past month.

Asian markets have been mixed early as the Shanghai Shenzhen and Hang Seng composites have produced solid gains, and Japanese equities have declined slightly. Trade talks between China and the U.S have been extended as they try to produce a working agreement. Economic data today will be rather light, but there will be a couple of speeches from Federal Reserve members, and China will release Trade Balance figures early on Tuesday. On Wednesday, the U. S will publish key PPI data and follow it with CPI numbers on Thursday.

Equilibrium and Technical Reversals, U.S Inflation Data Lackluster

The U.S Dollar remains within the stronger realms of its range, but the Yen, Euro, and Pound have been stable the past couple of trading sessions. U.S employment numbers came in slightly below expectations, but remain ultra-strong. However, wage inflation from the States again proved lackluster, which may make the Federal Reserve take their foot off the gas pedal eventually regarding their interest rate intentions. After two strong weeks for the U.S Dollar, traders may believe it is time for equilibrium and technical reversals.

Crude Oil Testing New Highs, Buyers Jump into Commodity Early

U.S Crude Oil has jumped as speculators have renewed their buying. Geopolitical concerns are creating an impact as the Trump White House talks tough about Iran, and the possibility of re-imposing sanctions. U.S Crude Oil is above 70.00 U.S Dollars per barrel, a high water mark it has not seen since 2014.

Investor Confidence Numbers from Europe, Consumer Borrowing Data in the U.S

European Investor Confidence numbers will be delivered at 8:30 GMT and may impact forex.

  • 8:30 AM GMT, E.U, Sentix Investor Confidence
  • 19:00 PM GMT, U.S, Consumer Credit

Yaron Mazor is a senior analyst at SuperTraderTV.

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About the Author

Yaron Mazorcontributor

Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.

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