This week, traders will be following important economic statistics from the UK and the US, as well as OPEC’s monthly report. The focus of attention is on Donald Trump’s increased tariffs on Mexican goods, which may take effect, and the visit of Japanese Prime Minister Shinzo Abe to Iran.
Manufacturing production in the UK. New tariffs on Mexico
The UK releases a report on the country’s manufacturing production at 08:30 GMT. A preliminary estimate shows growth of 0.2%. The forecast can be seen as relatively modest, since the data of the previous reports has not fallen below 0.9%.
After Donald Trump had announced his intention to slap new tariffs on Mexican goods, Mexican representatives flew to Washington to prove their effectiveness in preventing illegal migration. Nevertheless, tariffs may be increased by 5% on June 10.
Producer Price Index in the US. The “Russian trace” story to be continued
The US releases its Producer Price index at 12:30 GMT. The index is expected to come out at 0.2%. This important economic indicator helps measure the country’s economic development.
The US House of Representatives is expected to vote on June 11 to hold Attorney General William Barr in contempt of Congress. He had previously refused to provide a full report of the investigation carried out by Robert Mueller, in which he failed to prove the “Russian trace” in the US presidential elections.
Consumer Price Index in the US. Japan’s Prime Minister’s visit to Iran
At 12:30 GMT, the US releases the Consumer Price Index. It I expected to come out at 0.2%. A higher result will be a positive signal for the US economy.
Japanese Prime Minister Shinzo Abe is to pay an official visit to Iran on June 12-14. Abe is expected to try to persuade the Islamic country to take a more peaceful tone in negotiations with the United States, as well as to confirm the country’s lack of nuclear ambitions.
Consumer Price Index in Germany. The OPEC Monthly Report
Germany releases its Consumer Price Index at 06:00 GMT. This time, traders will compare actual data with a fairly high forecast of 1%, although the preliminary estimate was only 0.2%.
The OPEC Monthly Oil Market Report is to be published on June 13. The cartel will release data on the rates of production and refining, as well as the volume of oil consumption in the OPEC + countries. This report is very important for the market, because the cost of raw materials has recently decreased by 15%.
Retail Sales in the US
The US releases a report on Retail Sales at 12:30 GMT. After a previous decline of 0.2%, traders will positively react to any positive indicator.