This week the traders will focus on the United States. Democrats will continue to attempt to pressure the US president. The week’s news releases include the Fed’s report, data on the labor market and the core CPI. The Pentagon is developing a military space station. Europe has almost decided on the next chief of the ECB. Bank of Canada will announce the interest rate decision.
The mystery of Trump’s negotiations with Putin
The deadline for the White House administration to provide Congress with full information about the talks between US President Donald Trump and Russian President Vladimir Putin at the G20 summit in 2017 expires today. Also, the officials must give information on where exactly the transcript of the negotiations is kept.
Such demands on the White House administration have been previously put forward by Democrat Elijah Cummings, the chairman of the House Oversight Committee. Congressmen are trying to convict the president of violating the rules of keeping records of negotiations. If this request is rejected, Democrats may make an attempt to get the records of the negotiations in court.
US Labor Market. A new head of the ECB. US space station
A report on the number of open vacancies in the US labor market (JOLTS) in May comes out at 14:00 GMT. The expected value of 7.479 million may be overestimated. Last week’s ADP report on employment outside the agricultural sector from was worse than the forecast. This gives a signal that there is a slowdown in the labor market.
EU finance ministers must approve the current IMF managing director Christine Lagarde for the Presidency of the ECB. Her nomination had been previously approved by leaders of the European countries. There is almost no doubt that Lagarde is to become the new ECB chief.
The former head of the IMF is expected to have a stronger position on quantitative easing program in the EU than her predecessor, Mario Draghi.
July 9 is the deadline for applications to participate in the Pentagon’s competition for the development of an orbital station, which is to be used for experiments, cargo storage, and other tasks. However, given the fact that the customer is the US Department of Defense, the station can serve as a space military base.
The list of possible contractors of the Pentagon include the Boeing Corporation, which has significant experience in space projects, and Elon Musk’s SpaceX.
The Bank of Canada’s interest rate decision. Pre-sale of Telegram tokens
The Bank of Canada announces its interest rate decision at 14:00 GMT. It has been raised from 0.5% to 1.75% since May 2017. At the same time, the BOC managed to avoid a recession. Now the indicator is at the level of 1.75%.
The regulator adheres to a waiting position since October 2018, and there are no grounds for revising its policy now. This is why we don’t expect the rate to be changed.
The Gram Asia company will start selling tokens of Pavel Durov’s Telegram on one of the Japanese crypto exchanges. The sale of tokens violates the agreement, which does not provide for the possibility of purchasing an asset before its official release.
The US CPI
The US Core Consumer Price Index (CPI) comes out at 12:30 GMT. Experts expect an increase of 0.2%, but the readings in four previous reports were lower.
The Fed report. Trump’s legal team appeal
The Fed will release its monetary policy report at 15:00 GMT. The members of the Board of Governors are likely to continue to pause until they decide to reduce the rate.
On July 12, the D.C. Circuit of the US Court of Appeal will consider the complaint of Donald Trump’s legal team regarding the decision made by the previous instance, which obliges the American leader and his family members to provide the Congress with their financial records.