G7 meeting ended without a common stance

1. According to media as the G7 meeting was drawing to a close, with all parties agreeing to a joint statement, US president Trump instructed US diplomats not to sign it.
2. The US President’s instructions seem to be a reaction to some comments made by Canada’s Prime minister.
3. The other 6 members seem to stand by that communique and Canada retains its retaliatory tariffs , while Europe seems to be considering countermeasures for the US tariffs.
4. The revamping of the NAFTA agreement seems uncertain, after a Twitter attack on the Canadian Prime minister by president Trump.
5. Overall the meeting failed to establish a common ground avoiding a trade war and should there be headlines implying an escalation of the dispute we could see safe havens strengthening.

Trump-Kim meeting ahead

1. On other headlines, US president Trump flew to Singapore for his meeting with North Korean Leader Kim Jong Un tomorrow.
2. In the meeting the possibilities for North Korea to give up it’s nuclear arsenal in order for the US to lift trade sanctions are to be explored.
3. The road seems to be bumpy as president Trump and Kim Jong Un are yet to agree on the definition of denuclearization.
4. Should there be positive headlines about the meeting we could see safe havens weakening.

Today’s other economic highlights

• UK: Manufacturing Output for April, Survey: +0.3% mom Prior: -0.1% mom, 08:30 (GMT), could support GBP
• UK: Trade Balance for April, Survey: -11.25B Prior: -12.29B, 08:30 (GMT), could support GBP

As for the rest of the week

• Tuesday: UK employment Data for April, Germany’s ZEW Economic Sentiment for June and US inflation data for May are due out.
• Wednesday: we get the UK inflation data for May and FOMC’s interest rate decision.
• Thursday: we get Australia’s Employment data for May, Germany’s and France’s final HICP rates for May and ECB’s interest rate decision.
• Friday: BoJ’s interest rate decision, Eurozone’s final inflations rates for May and the US preliminary Michigan Consumer Sentiment indicator for June are due out.

IronFX Daily Report ‘June 11th’