Almost one week after Trump’s decision to call off his greatly expected summit with North Korea’s leader, the summit is back on track. After a lot of back-and-forth, high diplomacy and threats on either side, the Singapore summit is official. The meeting will finally take place on the 12th of June. It will be the first-ever meeting between US and N. Korea at the level of Heads of State.
Following negotiations between the US Secretary of State and the North Korean envoy, the latter delivered a personal letter to President Trump. Negotiations focused on nuclear weapons differences and specifically USA’s request from Korea to give up its nuclear program. In turn, USA is willing to lose sanctions on North Korea.
Meanwhile, North Korea is said to have replaced high ranking military officials ahead of Trump summit. Experts say Kim Jong-un seek to establish economic development and engage with the world, without the influence of the army.
The US Dollar weakened against its major-traded rivals, falling almost 3%. The Australian Dollar climbed 0.8% following strong data in retail sales and company profits.
The Sterling inched up against US Dollar, ahead of following strong UK Construction PMI. The pound fell against the common currency, which seems to revive.
The Euro strengthened, following the shifting of the political landscape in Italy. The single currency rose to $1,714, moving further away from its six weeks of losses and 2018 lows. Also, the euro rose 0.3% against the Swiss franc as the risk appetite returned. The Swiss currency usually bounces when there is uncertainty in the market.
Oil prices remained almost unchanged as extra US supply covers rising demand. OPEC members are expected to decide on raising the output during their oil policy meeting on the 22nd of June.
Gold traded flat as expectations of an interest rate hike this month outweigh support from worries about a global trade war. Forecasts for June show that the precious metal can do better as dollar rally halts.
Sources: Reuters, Euronews, Time
PLEASE NOTE The information above is not investment advice.