Trump-Kim meeting happening now

1. According to media as the Trump-Kim meeting is ongoing the first positive signs start to come out.
2. When asked how the meeting is progressing, president Trump said “Very good. Very, very good” while chairman Kim stated that “ we overcame all kinds of skepticism… and it’s good for peace”.
3. Should the meeting have a positive outcome, we could see the start of a process for further stabilization of the Korean peninsula.
4. The markets reacted calmly at the start of the meeting, while should there be further positive headlines we could see the USD strengthening and safe havens weaken.

Brexit test for Theresa May

1. On other headlines, UK government’s key Brexit legislation returns to parliament for a vote.
2. UK PM Theresa may will have to pacify both pro Brexiteers as well as pro EU rebels in order to pass the legislation.
3. The two key amendments which the UK government will have to overcome relate to the UK remaining in the EU customs union and the second about parliament given the power to veto a possible deal with the EU.
4. The markets seem to be in a “wait and see” position, watching out for signs of the Brexit prospects as well as the PM’s future and should there be positive headlines, we could see the pound getting some support.

Today’s other economic highlights

• UK: Average Earnings Index (+Bonus) for April, Survey: +2.6% yoy Prior: +2.6% yoy, 08:30 (GMT), could support GBP
• UK: Unemployment Rate for April, Survey: 4.2% Prior: 4.2%, 08:30 (GMT), could support GBP
• UK: Employment Change for April, Survey: 110k Prior: 197k, 08:30 (GMT), could weaken GBP
• Germany: ZEW Economic Sentiment for June, Survey: -14.0 Prior: -8.2, 09:00 (GMT), could weaken EUR
• Germany: ZEW Current Conditions for June, Survey: 85.0 Prior: 87.4, 09:00 (GMT), could weaken EUR
• Austria: OPEC Monthly Report, 11:20 (GMT)
• US: Core CPI rate for May, Survey: +2.2% yoy Prior: +2.1% yoy, 12:30 (GMT), could strengthen USD
• US: Headline CPI rate for May, Survey: +2.7% yoy Prior: +2.5% yoy, 12:30 (GMT), could strengthen USD
• US: API weekly Crude Oil Stocks, Survey: N/A Prior: -2.028m, 20:30 (GMT), any reading<2.028m could support oil prices

IronFX Daily Report ‘June 12th’