Today the American dollar will be a very prominent asset in the Forex world, as right now it is having a rather turbulent time. President Trump, who has long criticized the Federal Reserve and their interest rate hikes, once again stated that the USD being too strong is hurting America’s international trade, and that he would like to see it weaken.
Meanwhile, the markets continue to be under the influence of the trade dispute between the United States and China. Donald Trump has continued to threaten China and appears to expect that the Chinese will sign his deal during the G20 summit at the end of June. China, however, has hardened its position regarding the United States and does not seem ready to give in to Trump’s pressure. This tension is weakening stock markets and boosting safety assets.
Today we expect the consumer price index from the United States. This is an important inflation indicator and if it fails to reach the forecasts, it would be a sign that the American economy is indeed slowing down. This would lend more weight to the speculation that the Federal Reserve might have to increase interest rates this year.
We also expect the Energy Information Administration’s report on crude oil in the US, which would affect the price of oil.
