Italian president vetoes coalition government

1. Italian president Mattarella vetoed the forming of the 5S-League coalition government, as he did not approve the finance minister.
2. The candidate had threatened to pull Italy out of the common currency and the president justified his position by stating that the Euro membership is a fundamental choice.
3. Italy could be heading back to elections as the president is expected to ask a former IMF official to head a temporary government.
4. EUR jumped and should there be further positive headlines about Italy we could see the EUR strengthening.

Trump-Kim meeting may be back on

1. President Trump stated, that his meeting with N. Korea’s leader Kim maybe back on, if talks with N. Korea are productive.
2. The president also twitted yesterday that a US team had arrived in N. Korea to prepare for the possible meeting.
3. Earlier, S.Korean president Moon stated that he and Kim had agreed that the US-N.Korea meeting should go on.
4. Should there be further positive headlines about the meeting we could see JPY weakening.

Today’s other economic highlights

• No major financial releases are expected today as UK and US markets are closed.

As for the rest of the week:

• On Tuesday, we get Japan’s unemployment rate for April and the US CB consumer confidence for May.
• On Wednesday, we get Japan’s Retail sales growth rate for April, Germany’s unemployment data for May, Eurozone’s final consumer confidence for May, Germany’s preliminary HICP rate for May, the US ADP employment for May, the US GDP growth rate for quarter 1 and BoC’s interest rate decision.
• On Thursday, we get China’s Mfg PMI for May, Germany’s retail sales for April, Eurozone’s preliminary CPI rate for May and Canada’s GDP growth rate for quarter 1.
• On Friday, we get the US employment report with its NFP figure for May and the US ISM Mfg PMI for May.

IronFX Daily Report ‘May 28th’