A Week in the Market (07.06 - 13.06): Central Banks and a Drop of Oil
The second week of June is not going to be as fruitful in terms of statistics as the previous one; instead, it will refresh the investors’ understanding of credit and monetary policies of Central banks, as well as provide new estimations of the oil sector.
Euro: the quotations will mimic the decisions of the regulator
The European Central bank is planning yet another meeting which will be devoted to its monetary policy and comments on the state of the economic system. The interest rate is going to remain at zero as the time for any revision has not come yet. However, the opinion of the ECB on the state of the economy as well as its forecasts for the future is likely to be positive, which is good for the EUR.
Central banks: let us move on
This week, Central banks of the following countries are having meetings: Kazakhstan, Canada, Poland, Chile, Brazil, Russia, and Peru. In most cases, interest rates are going to remain without change. The Central bank of Russia is planning a raise in the key rate to 5.5% per annum. Neutral comments of the banks will provide a foothold for risky currencies.
Brent: eyes on the IEA
The International Energy Agency is issuing its regular forecast on the oil market this week. Bulls are craving for a positive estimation because it will provide for high demand for Brent even is the price remains high.
The USA & Iran: nuclear talks will continue
The renewal of talks between the USA and Iran on the nuclear deal will be vital for capital markets. If the dialog is positive, and Iran will get free of some sanctions, the markets will enjoy a positive driver. Partly these expectations are already included in oil prices and prices for risky assets but growth might continue.
JPY: a new flow of statistics
This week, Japan is publishing the final GDP for Q1, 2021, average earnings data, payment balance, bank lending, and the index of current economic conditions. Normally, the JPY hardly reacts to statistics but any hints on consumers starting to spend more will be good for the yen.