The published Minutes of the FOMC session left a bad taste in the mouth of traders, as weak comments from committee members raised doubts about the reality of the June rate hike. Markets will be sensitive to the data from the US and will be guided by them. Next, we’ll look at the key publications for today.
Among the first to come out preliminary data on GDP (q/q) of Great Britain. Given the recent strength of the pound sterling, this publication can cause market volatility. This indicator reflects the change in the value of goods and services produced in Britain, and is the primary indicator of the economic health of the country. If it exceeds expectations, the pound sterling rate will rise. Against the backdrop of a disappointing report, the British currency may fall and lose yesterday’s levels.
Further in the United States will be published The number of initial applications for unemployment benefits with a preliminary forecast of 238 thousand. The indicator reflects the number of Americans who for the first time last week applied for benefits. This indicator is an important indicator of the overall economic state of the country: the more employed, the more likely growth in consumer spending, hence – a healthier economy. If the report comes out higher than expected, the dollar’s rate will fall, as in the market prices there will be a potential economic downturn. Conversely, if the indicator falls below expected.
Resistance will be presented today in the form of the 172nd meeting of OPEC – the organization of oil-exporting countries, which accounts for 40% of the world supply of raw materials. It is important that all member countries adhere to uniform supply standards. News of the outcome of the meeting may appear at any time, so that volatility in the markets may flare up unexpectedly. If the meeting decides to further reduce supplies, the price of oil may rise above $ 55, and the trend will turn into bullish. If, however, the extension of the supply reduction does not take place, then, because of the oversupply of the market, the cost of raw materials will continue to fall and may be below $ 45.