Today, traders are likely to focus on crude oil. Yesterday, Saudi Arabia reported that a number of its oil installations were under drone attacks. This led to the price of Brent crude oil rising sharply. This report came 48 hours after two if its tankers were struck. Others from the United Arab Emirates (UAE) were struck as well. The attack was claimed by Yemeni Houthi rebels, who are associated with Iran. This came a few weeks after the US, which backs Saudi Arabia, ended the waivers given to a number of countries. Today, traders will want to see the progress of this geopolitical event. They will also receive the inventory data from the EIA. They expect that the inventories declined by 800K barrels.
Chinese data that was released earlier on is also going to be looked at. The data showed that in April, the industrial production rose by an annualized rate of 5.4%, which was lower than the expected 6.5%. The fixed asset investments rose by an annualized rate of 6.1%, which was lower than the expected 6.4%. The retail sales rose by 7.2%, which was lower than the expected 8.6%. In response to the data, the Australian dollar declined as shown in the chart below.
Germany is expected to release the second reading of the Q1 economic growth numbers. This data is expected to show that the economy expanded by 0.7%, which is lower than the previously released 0.9%. On a quarterly basis, the economy is expected to have increased by 0.4%. France will release its CPI data while the European Union will release the employment and GDP data.
In the United States, investors will receive the retail sales and manufacturing data. In April, the retail sales are expected to have increased by 0.2%, which was lower than the previous 1.6%. The retail contrail is expected to increase by 0.4% while the core retail sales are expected to grow by 0.7%. Other data expected are industrial production, business inventories, and manufacturing production. Meanwhile, in Canada will release the CPI data.
Finally, traders will continue to focus on trade as the US and China continue to flex their muscles. This week, China announced that it would retaliate against the US. Yesterday, in a bizzarre tweet, Donald Trump requested the Federal Reserve to help him win the trade war by lowering rates.