On Friday, the US Commerce Department recommended that President Trump impose tariffs on steel and aluminum imports from China and other countries. Whether this will take place or not is yet to be seen, but evidently China’s Commerce Ministry said they would take necessary steps to protect their interests if the final decision affects China.
With that said, the Wellington open should be fairly quiet. Tomorrow is a US holiday and some of the Asian markets will remain closed early in the week due to Lunar New Year. The indictments resulting from the Mueller investigation into Russian interference in the US 2016 election caused a few market ripples on Friday, but there wasn’t anything new revealed that could jeopardize Trump’s status.
Data-wise, in the US there are some Fed officials speaking over the week on growth outlook. In Europe there is a moderate data calendar in the coming week. There are updates on various business confidence and activity measures, the services PMIs and inflation. In the UK things are more interesting, with updates on employment and wages. Australia has the RBA minutes and updates on construction and wages measures. Canada releases it’s most recent CPI and Retail Sales Data.
Don’t miss our Webinar on Friday entitled “Navigating Event Risk: Canadian CPI & Italian Elections”
Going into the week, I like Copper longs, and tentative/cautious longs on Dow. Within FX, NZD seems to be the leader as of Friday’s close, whereas Euro and Cad are weakening.
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