US and UK Growth Projections are Tapered
The greenback and Pound are still soft. International Monetary Fund lowered its forecasts for the economic growth in Britain (1.7% this year and 1.5% in 2018) and US (2.1% this year and 2.1% in 2018). The reason for that were weak inflation and Donald Trump’s shocking actions in the US and negative figures of the first quarter in the UK. The IMF also lifted its projection for the economic growth in China (6.7% this year, 6.5% in 2018), Eurozone (1.9% this year and 1.7% in 2018) and Japan (1.3% this year and 0.6% in 2018). Yellow metal is sustained, holding over 1250 handle. WTI crude oil is fluctuating between 45.5/46.0.
This week, Liam Fox (UK International Trade Secretary) is going to have a two-day meeting with Robert Lighthizer (US Trade Representative). The two will discuss a trade deal for Britain after she leaves European Union. Additionally, the Federal Reserve will decide when to raise the rate. Traders will pay much of attention to the meeting. Members will talk down the inflation, employment, growth and balance sheet.
Japan PMI manufacturing decreased 0.2 pts to 52.2 this month. Today, the Eurozone will publish PMI indices. The United States will also announce PMIs, existing home sales and Gross Domestic Product of the second quarter. Canada will show wholesale sales. Britain will issue Q2 GDP. Germany will announce Ifo, New Zealand will release trade balance, Australia and Japan will both feature Consumer Price Indices.