It should be a quiet start when Asia opens early Monday and the only significant piece of news that came across my desk is about the purge against Saudi Arabia’s political and business elite. This will likely impact Crude Oil. NFP didn’t alter Fed expectations and as such, USD sentiment remains bullish. RBA & RBNZ meetings will be the highlights of the week.
USD: boring week for data. On the political front, Trump’s tax plan is -for now – likely to attract capital into US corporations but also likely to pressure the middle class even more. Tax cuts on corporations and elimination of deductibles for households means, to be blunt, buy US stocks.
EUR: mostly minor releases with EU PPI and retail sales while Germany will release industrial production, factory orders and trade data. Elections IN Sicily will be a tell-tail regarding next year’s vote in Italy: will we see another country go anti-establishment and attempt to leave the EU?
UK: Industral production is the only thing on the calendar.
AsiaPac: busy week for China with trade balance, consumer and producer prices. In Australia, the RBA meets; across the ditch, the RBNZ meets.
Going into the week I remain bullish on US equities & Crude Oil and bearish on Aussie, Euro and Gbp mainly vs. USD.
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