Anxious investors are surveying the geo-political landscape this morning as the U.S has announced it is pulling out of the Iranian nuclear deal. The U.S Dollar remains strong. Wall Street was cautious yesterday. And inflation data from the States will impact forex later.
Geo-Political Waves and Anxious Investors, Asian Equities Tentative Early
Asian markets have been rather cautious early this morning and lost value after the tentative results on Wall Street yesterday. Geo-political news has dominated the investment landscape. The U.S decision to walk away from the Iranian nuclear deal has raised plenty of eyebrows. And China, Japan and South Korea are holding a summit today, in which economics and North Korea are getting plenty of attention. German Industrial Production data was slightly stronger than expected yesterday, and Italian Retail Sales will be released soon. Wall Street continues to prove uneasy, and American investors are still looking for equilibrium due to the strong U.S Dollar.
Major Currencies Testing Technical Limits, Consumer Price Index Tomorrow
The Yen, Euro and Pound continue to be tested in forex. Major currencies are near important technical limits against the U.S Dollar. Producer Price Index figures will come from the States today, and tomorrow’s Consumer Price Index reading will cause waves. The Federal Reserve is expected to raise its interest rate in June already, but if U.S data remains strong it will increase the likelihood of an additional rate hike in the early fall – potentially September.
Energy Sector and Iran Conversation, Crude Oil Testing Highs this Morning
U.S Crude Oil values have jumped higher and the commodity is comfortably above 70.00 Dollars a barrel. Supply numbers will come from the States today, but the topic of conversation will be Iran and how renewed sanctions from the U.S will impact the energy sector.
Inflation Numbers from U.S Coming, Crude Oil Inventories Data
The Producer Price Index from the U.S will get the attention of traders upon its release at 12:30 GMT.
- 8:00 AM GMT, Italy, Retail Sales
- 12:30 PM GMT, U.S, Producer Price Index
- 14:30 PM GMT, U.S, Crude Oil Inventories