Trump and Putin: New Findings. What Will the Week Bring?
The new week is off to a slow start in the markets. The macroeconomic calendar for Monday lacks any market-moving data, and investors await Jerome Powell's speech in Jackson Hole. The Trump-Putin meeting remains a high-profile event.
Will the new findings regarding the conflict in Ukraine have consequences for markets?
The eagerly anticipated and widely commented-on meeting between the presidents of the United States and Russia failed to produce a breakthrough in the conflict in Ukraine. The meeting itself was brief, and Putin's plan for a full withdrawal of Ukrainian troops from the occupied Donetsk Oblast and the seizure of control over part of Ukraine was understandably met with opposition from Kyiv.
Trump's "peace summit" failed to shake up markets, although WTI crude oil was down by as much as 0,9% on Monday morning. Besides crude oil, NATGAS, wheat, and corn remain key assets to watch at this point, as they could benefit from a potential end to the conflict.
High gas prices in Europe led to a huge weakness of the euro in 2022, and this inverse correlation between gas prices and EURUSD remains unchanged. If there's a glimmer of hope for cooperation with Russia on resuming hydrocarbon supplies, this could be another factor supporting the euro. However, the Jackson Hole symposium remains significant and could be a key factor influencing the US dollar. The recent string of weak US data has significantly increased expectations for Fed interest rate cuts. Will Jerome Powell meet market expectations in this regard?
- Market Consequences of the Trump-Putin Meeting
- What do the latest macroeconomic data tell us?
- Will Jackson Hole support USD?
About the host
Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.
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