The oil cartel is keeping capital markets positive, while the labor market in the USA demonstrates hidden power. There is little that can spoil the investors' mood except for the overbought state of the market. In the new week, market players may go on buying until they decide that things are getting too expensive.
Brent: no one is afraid of height
It is already known that OPEC+ members have agreed on prolonging the maximal limitation of oil production for another month - until the end of July. This is the positive fact waiting for which investors kept buying. Now the sector remains positive, Brent is aiming at 43 USD per barrel, from which level it may p[roceed to 45 USD at once.
The Fed: watching Powell
On Wednesday, June 10th, the 2-day session of the US Fed will be over. The interest rate remains at the same place - between 0-0.25% per annum. We are waiting for the comments of Jerome Powell, the head of the Fed, about the real situation in the economy and further steps of the Central Bank. Powell must be optimistic about the statistics in May and state that the American stimulation works. As for predictions, he will most likely be as careful as always not to spoil positive market moods. All in all, this June session of the Fed may turn out "through-pass" and hardly informative: the statistics provide much more data. The calmer and more confident will be Powell, the better it will be for the USD.
GBP: still ready to grow
Great Britain will also be active in turns of statistics. Last week, the pound renewed its 3-months peaks in pair with the dollar, but this was quite natural as the USD was almost in a coma. The weakness of the dollar covered up for all the negative factors at once - such as the number of victims of the coronavirus and Brexit problems. So, if the statistics do not turn out disastrous, the pound will go on ascending. The statistics planned are the industrial production data, from the manufacturing to the construction industry, as well as the monthly GDP and trade balance parameters.
Asia: we may count on positive statistics
China will show its inflation and producer prices. Japan will issue the final GDP data for the first quarter, the evaluations of the current economic situation, producer price parameters, and some minor reports. The CNY is restoring its positions after the falling in May, however, keep in mind that it is controlled manually. The JPY in pair with the USD does not attract anyone as a safe-haven asset because investors do not have anything to hide away from.
Interest rates: Kazakhstan, Ukraine, Serbia
It has already become known that the National bank of Kazakhstan left the interest rate without change at 9.25% per annum, having decided to wait and see how the situation in the world capital markets would develop. On Thursday, June 11th, the Central bank of Ukraine will most likely decide to decrease the interest rate to 7% from 8% per annum, while the Serbian regulator may keep its monetary and credit policy without change.