The market focus of the world is focused on the events taking place in Singapore, with history being made today as Donald Trump became the first sitting American president to meet face-to face with a North Korean leader.
The jam-packed calendars for economic data and political events mean it is going to be a very busy week in the financial markets, perhaps the busiest of the year so far. This implies that the focus will be short-term with the longer-term themes likely to take a back seat. But the busy week has started quite badly for the British pound/U.S. dollar (GBP/USD) after the release of some poor UK economic data earlier today.
The mood in financial markets is relatively upbeat at the start of a very busy week, as investors shrug off the G7 meeting that didn’t exactly go to plan as President Donald Trump rejected the prepared communique and left early.
Tuesday’s Core CPI read may not be the event you pay admission for in a week highlighted by a trio of central bank policy meetings and a historic Summit between President Donald Trump and North Korean dictator Kim Jung Un, but it begs to set the tone. In fact, Wednesday’s FOMC Meeting encourages a stronger emphasis on this inflation indicator.
A funny thing happened on the road to Singapore. The Group of 7 joint communique was agreed to by all nations until the Prime Minister of Canada Justin Trudeau made a statement after President Trump was on the plane going to try to rid the world of the North Korean regime’s nuclear weapons and said that “U.S. tariffs were kind of insulting” and he “will not be pushed around’ set off President Trump and his advisors.
Singapore will be considered as the capital of the world for at least the early part of this week. The unprecedented summit between U.S. President Donald Trump and North Korean leader Kim Jong-un in Singapore is considered a major event in the financial markets and we can expect that it will be closely monitored by investors around the globe.