Crispus Nyaga

Crispus Nyaga is a Nairobi-based trader and analyst. He started trading more than 7 years ago as a student. He has published in several reputable websites like The Street, Benzinga, and Seeking Alpha. He focuses mostly on G20 currencies, commodities like Crude oil and Gold, and European and American large-cap companies.

Today, investors will continue to focus on the ongoing trade conflict between the United States and China. This is after China announced that it will put additional tariffs on goods worth more than $60 billion. These tariffs will be targeted at some industries like agriculture and manufactured goods. Traders will continue to look at the performance of key assets in relation to the trade war. Global stocks and the yuan have been the worst-performing assets in the financial market after the crisis started as shown below.

Traders look towards Sweden. Earlier today, the country reported that its unemployment rate declined to 6.7%. In March, the unemployment rate was at 6.9%. Later in the day, the country will release the consumer price index data. The CPI for April is expected to increase by 2.1% from the previous 1.9%. On a MoM basis, the CPI is expected to rise by 0.6%, from the previous 0.2%. The CPI at constant interest rates is expected to rise by 1.9%. Ahead of these data, krona is trading as shown below.

Focus will also be on the sterling. In recent days, the sterling has declined sharply after chances of Theresa May remaining in power decreased. This is because of the rise of Nigel Farage’s Brexit party. Most people in her Tory party have said that they will vote for Farage’s party in the EU elections. Today, the country will release the employment data. The numbers are expected to show that the unemployment rate in March remained unchanged at 3.9%. The claimant count change is expected to decline to 24.2 while average hourly earnings are expected to decrease a bit. The employment change in the past three months is expected to increase by 141K. The chart below shows the performance of the sterling ahead of this data.

Crude oil is also noteworthy as OPEC releases its monthly report. The report is important because it tells investors on the supply and demand dynamics of OPEC members. Every day, OPEC produces more than 30 million barrels of crude oil. An increase in OPEC production would mean lower crude oil prices. Traders will want to know the impact of Iran’s exit after the US imposed sanctions on its industry. The chart below shows the performance of Brent and WTI ahead of this data.

Traders will also focus on the European Union ahead of key data from Germany. The CPI is expected to remain at 2.0%. The harmonized CPI too is expected to remain unchanged at 2.1%. Meanwhile, the ZEW economic sentiment for May is expected to rise to 5.1 while the ZEW current conditions are expected to increase to 6.0. The chart below shows the performance of the euro ahead of the data.

Was this article helpful?

0 0 0