Today we expect the revised first quarter GDP report from the United States. Previously growth was estimated at 3.2% but several lukewarm fundamental reports this year have made investors doubt the health of the American economy. On account of the declining situation on the US markets, investors are becoming increasingly confident that the Federal Reserve might need to lower interest rates this year, possibly in September.
Moreover, the ongoing trade dispute with China appears to be far from over. The two countries have still not reached an agreement and after the US took unilateral action against China, the East Asian country also hardened its stance regarding the States, which puts the whole prospect of a bilateral trade agreement in question. Despite the fact that President Trump has presented the entire conflict as something beneficial for the United States, right now it is American businesses that are struggling, since the tariffs come out of their pockets, not the Chinese manufacturers’. This could explain the slowdown exhibited in some of the recent economic reports from the US.
Today we also expect crude oil inventories from the US. A decline of 857,000 barrels is expected. If it turns out there are more barrels than the markets are ready for, we can see a decrease in crude oil prices again.
