The financial markets are awaiting many important forex news, represented by a reassessment of the results of the G7 summit meeting, especially with the negative developments in the meeting that took place on Friday and Saturday, as US President Donald Trump left the meeting early and refused to participate in the final statement. He criticized Canadian Prime Minister Justin Trudeau, and markets will focus on the historic summit between Trump and the North Korean leader, which will be held next Tuesday in Singapore.
As for the central bank meetings, three meetings of the largest central banks in the world will be held. On Wednesday, we will be on a date with the Federal Reserve meeting amid expectations of raising interest rates, and the European Central Bank will also meet in light of increasing expectations that the bank will announce a date The end of his stimulus program, and monetary policy makers will meet at the Bank of Japan.
The following are details of the five most important events affecting the movements of the financial markets:
1 The consequences of the G7 meeting
The G7 meeting ended on negative developments towards the escalating trade dispute due to the tariffs imposed by the United States, as US President Donald Trump exited early from the meeting and refused to participate in the closing statement in addition to criticizing Canadian Prime Minister Justin Trudeau, which It underlines the continuing tension and trade dispute between the United States and its major allies.
It is worth noting that the United States last week imposed tariffs on steel and aluminum imports on the European Union, Canada and Mexico, which led to increased fears in the markets about the escalation of global trade tensions.
2 The upcoming summit between the US President and the North Korean leader
Financial markets are eagerly awaiting the historic summit between US President Donald Trump and North Korean leader Kim Jong Un in Singapore on Tuesday, and nuclear weapons issues will be the main issue on the negotiating table.
This meeting comes after quarrels and controversial statements from both sides. During the past few weeks, the US administration canceled the meeting, and a few days later, the summit was announced again.
There are many doubts that Kim will not completely give up his nuclear program, while some believe that participation in the meeting is aimed at relieving the United States of economic sanctions on North Korea.
3 Federal Reserve meeting
At 18:00 GMT on Wednesday, the Federal Reserve will release the results of its regular meeting, amid expectations that the Fed will raise interest rates by 25 basis points, bringing interest rates between 1.75%-2.0%.
30 minutes after the meeting’s statement was issued, Bank President Jerome Powell will hold a press conference, amid anticipation from investors to learn more clues about the future of monetary policy during the second half of this year. The Bank will also announce its expectations for economic growth and inflation rates.
On the economic data front, the US economy will release important data on inflation rates, retail sales, industrial production and manufacturing conditions in New York State.
4 European Central Bank meeting
At 11:45 GMT on Thursday, the European Central Bank will release the results of its regular meeting, and expectations indicate that the bank will announce the date for ending its 2.5 trillion euro stimulus program, in a strong step for the European Central Bank’s direction to tighten its monetary policy before the end of this year. And 45 minutes after the monetary policy statement, Bank President Mario Draghi will hold a press conference.
Expectations have increased for the bank towards tightening its monetary policy, following the statements of the chief economist at the European Central Bank, Peter Bright, in which he indicated that the bank would reveal its plans to exit its stimulus program during the June meeting.
5 The results of the Bank of Japan meeting
Important forex news is also scheduled to announce the Central Bank of Japan on Friday its decision on its monetary policy, amid expectations that the bank will maintain its monetary policy and interest rates unchanged, and Bank President Haruhiko Kuroda will hold a press conference to discuss the decision.
Recently, some indications revealed that the Bank of Japan is paving the way for the start of discussions to reduce its stimulus program.