Trade war concerns continue to be the most talked about topic on the market. China and the United States put into effect reciprocal tariffs on each other on Friday, and more are expected to start in two weeks. Trump has also threatened the European Union, Canada, and Mexico with substantial tariffs. The American President is coming to Europe this week for a NATO summit where his trade policies are likely to come up.
This week we also expect the latest CPI data from the United States. Analysts expect a .2% increase in the reports due this Thursday. This would give a good inkling as to how the Federal Reserve will proceed with their planned interest rate increases.
On Wednesday we would hear from the Bank of Canada, who is widely expected to raise interest rates to 1.5%, if economic growth allows it.
Today we also have a speech by ECB President Mario Draghi in Brussels before the European Parliament, which is of high importance to the euro.
