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Central Banks Meet


Not one, or two, but three central banks are scheduled for this week. Starting with the Fed which started its two-day meeting heading in for tonight’s Interest Rate decision. According to the Fed Funds Futures, which is the metric used to see the probability of a rate hike at the next meeting, this shows that there is an 84.0% chance of a rate hike towards the <2.00%, while a 16.0% chance of a rate hike to [#lessthansign]2.25%. The Press Conference that follows the statement on Wednesday, will hold more information and will be a market mover, just as much as the Statement and Interest Rate Decision. This means that the rate hike is a done deal for the Fed, however, risk still remains as ECB and BOJ are scheduled for this week.
The ECB is also due this week, one day after the Fed. As expected the ECB is supposed to keep the Main Refinancing rate at 0.00%, however markets will be focusing on the potential of exiting the QE. The Press conference that is following with Mario Draghi doing his usual speech of low inflation and Geopolitical tensions.
The BOJ is rounding off the Central Bankers as they stay at the same Negative Internet Rate Policy (NIRP). However, investors will not be looking at the interest rate decision, but more at the Press Conference and the Statement that is released along side the decision. Should there be any hawkish tilt from Kuroda on Friday, the JPY could regain some of the losses that it has been witnessing as of late.
Trump/Kim Summit
Nearly five hours of unprecedented and strange talks between US President Donald Trump and North Korea's Kim Jong Un ended on Tuesday with fulsome declarations of a new friendship but just vague pledges of nuclear disarmament.
The meeting came only months after the two men traded nuclear taunts, ratcheting up tensions and leading to fears of war. By contrast, Trump appeared to back off a military footing on Tuesday, declaring the US will stop the "war games," an apparent reference to joint military exercises with South Korea that North Korea has long rebuked as provocative.
The future however, remains unclear -- the U.S. and North Korea did not reach any agreement on the details of how to achieve or verify that denuclearization, Mr. Trump said. "We'll be verifying," the president remarked in a rare, extended news conference after the summit. Mr. Trump also claimed Kim told him North Korea has destroyed a "major" missile testing site, although he didn't expand on that.
G-7 Summit
During the G-7 Summit that happened during the weekend, it was clear that President Donald Trump was not interested in the summit and did not enjoy being there. In a picture that is floating around the internet where it seems that he is being confronted by Merkel, he seems disinterested and bored of what his happening as he sits with his hand crossed over his chest looking blankly at Merkel.
After Mr Trump had left the summit in Quebec he rounded on Justin Trudeau personally, suggesting the Canadian prime minister was "very dishonest and weak" and "acts hurt when called out".
During a news conference Mr. Trudeau had reasserted his opposition to US tariffs on steel and aluminum and vowed to press ahead with retaliatory moves on 1 July.
UK Prime Minister Theresa May told MPs on Monday that she wanted to pay "a particular tribute" to Mr. Trudeau for his leadership and skillful chairing.
She said it had been "a difficult summit with, at times, some very candid discussions" and that the UK would honor its commitments in the joint communique.

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