Your Monday Wake Up Call 21 May 2018

What to look forward to this trading week

“Is it on or it is off?”, that was the question surrounding the proposed US and North Korea talks last week as the Supreme leader Kim Jon-Un threatened to walk away from the talks. Crude oil continued its ascendency with market analysts forecasting that a barrel of crude could change hands at $90/barrel before the end of the year. The Rand was under pressure last week as yields on the 10-year government bond (R186), breached the 8.6% level.  The move in the local 10-year bond was in line with moves in emerging market yields as the US Dollar appreciated on the back off proclamations from the Fed that the central bank was still on course for 3 or 4 rate hikes this year. Volatility remains the only constant in this market, traders will have many treats to salivate over. Below I have highlighted a few key events that are key to watch in this week’s trading.

• Mondays are relatively muted on the economic data front, notable releases on the day are Japanese Trade balance numbers. Donald Trump and the Treasury Secretary will have a keen eye on these numbers as this could influence their decisions on future trade pacts and alliances.

• Tuesday economic releases will have a lot of focus on the US as we see the Richmond Fed Manufacturing index being released on the day and the API Crude oil stock change.

• Wednesday will provide the market with some mouth-watering treats as Japan, France, Germany and the EuroZone release Manufacturing PMI numbers. Stats SA will release inflation numbers for South Africa, this will be a key indicator for the MPC committee as they prepare for their Interest rate decision on Thursday. The UK will also release their inflation numbers at the same time as Stats SA on the day. Focus will move to the US late in the day as the US releases PMI numbers, new home sales and crude oil inventories. The entrée for the week without a doubt will be served on Wednesday evening as the Fed releases the FOMC minutes at 8pm SAST.

• Thursday will be a jampacked day with Germany releasing Consumer confidence and Gdp numbers before the market opens at 8am, we cross the English Channel for Retail sales figures at 10:30 am. Brexit talks are underway this week, the British Conservative government cannot afford more defeats and stagnation on the matter as the British Pound continues to take punches from the market for its governments indecision. The South African Reserve Bank will release the Interest rate decision at 3pm. The usual Thursday barrage of data out of the US starts with Jobless claims at 2pm followed by Home Sales at 4pm and natural gas stocks will be released at 4:30pm.

• Super Friday comes with a delectable assortment of treats with the focus being on the US that will release their durable goods orders at 2:30pm. There are four FOMC members that will speak on Friday, with Fed Chair Powell kicking it off at 3pm and Robert Kaplan closing the show at 05:45pm.

Source: Bloomberg

We will be keeping tabs on the events in the markets. Check out our blog for market updates, insights from our GT247.com team, and our independent analysts. Not sure about a trade? Call the GT247.com Trading Desk on 087 940 6102, and bounce your idea off one of our dedicated traders.

Until next week, we wish you profitable trading!