Although the G7 summit official agenda does not explicitly mentions it, trade war, US tariffs and climate change will lead the talks. Recently Trump decided to impose 10% and 25% tariff on imported steel and aluminum, respectively, from EU, Canada and Mexico. The response on the part of once US allies was instant. Such differences on core issues may result to absence of the usual joint communique for the first time in G7 history.
In fact, this summit seems more like a G6 + 1 summit than a G7 one. Experts predict that USA will be isolated as opposition against the States is almost unanimous.
There are five themes for this year’s summit:
- Investing in growth that works for everyone
- Preparing for jobs of the future
- Advancing gender equality and women’s empowerment
- Working together on climate change, oceans and clean energy
- Building a more peaceful and secure world
Unofficial agenda may contain the Washington’s tariff decision, a discussion on North Korea and the president’s scheduled summit in Singapore. Brexit may also be on any unofficial agenda, as well as 2015 Iran Nuclear Deal.
Three days of protests are planned this week in Quebec, where demonstrators will express their opposition to the G7 agenda.
MARKETS ahead of G7 Summit
The US Dollar weakened against its major-traded rivals as Euro puts pressure. The Australian Dollar climbed to a new six-week high following strong GPD data and annual growth sprint for the first quarter of 2018.
New Zealand Dollar got closer to one-month high, at $0,7045.
The Sterling also hit a ten-day high as US Dollar weakened. After sliding from a 2018 high of more than $1.43 in April to $1,33 it seems to recover, although Brexit fears are always there.
The Euro climbed to a ten-day peak, following ECB Praet’ s comments that inflation is on its way back to target. The single currency rose 0.3.
Oil prices remained almost unchanged as fears about overproduction softened following Venezuela’s falling oil output.
Sources: Reuters, Euronews, Time
PLEASE NOTE The information above is not investment advice.