IronFX, Daily Report: Trump - Kim meeting canceled & Brexit progress remains clouded

Trump – Kim meeting canceled

• President Donald Trump canceled his planned meeting with North Korean leader Kim Jong Un scheduled for June 12 in Singapore.
• Trump’s decision was communicated Thursday in a letter to Kim, released by the White House.
• North Korea said it was surprised by president Trump’s decision to cancel the meeting and that they are still willing to meet the US.
• North Korea, made a show of destroying its main nuclear-weapons test site earlier on Thursday with witnesses a group of foreign journalists. There was no independent verification that the site was disabled nor confirmation of further weapons development.
• Further discouragement regarding the US – North Korean officials meeting could strengthen safe havens.

Brexit progress remains clouded

• According to media EU officials stated that little progress was made on the Irish border issue while at the same time dismissed as “fantasy” some main UK Brexit demands.
• EU officials also blamed the UK of not being able to realize that Brexit will set a distance between the EU and UK.
• In the UK political scene, UK officials stated that key Brexit legislation would return to the parliament in a matter of weeks.
• The UK cabinet remains deeply divided and seems to be rapidly running out of time to reach an October agreement with the EU.
• Should there be further negative headlines about Brexit we could see the pound weakening.

Today’s other economic highlights

1. Germany: IfO Business Climate for May, Survey: 102.0 Prior: 102.1, 08:00 (GMT), could weaken EUR
2. UK: GDP 2nd preliminary for Q1, Survey: +0.1% qoq Prior: +0.1% qoq, 08:30 (GMT), could weaken GBP
3. US: Durable Goods Orders for April, Survey: -1.4% mom Prior: +2.6% mom, 12:30 (GMT), could weaken USD
   Core Durable Goods Orders for April, Survey: +0.5% mom Prior: +0.1% mom, 12:30 (GMT), could strengthen USD
   U Michigan Final Consumer Expectation for May, Survey:98.8 Prior:98.8, 14:00 (GMT), could weaken USD
4. Speakers : German Buba President Jens Weidmann (07:20 GMT), BoE governor Mark Carney (13:20 GMT), Fed Chair Jerome Powell (13:20 GMT), ECB Benoit Coeure (13:45 GMT), FOMC members Bostic (15:45 GMT) and Evans (15:45 GMT) as well as Dallas Fed President Kaplan (15:45 GMT) speak.

IronFX Daily Report ‘May 25th’