The US-China trade deal and upcoming PMI are in focus of traders' attention.
The US-NK summit: is it really a progress?
Before the world was discussing a possibility of the US-North Korea summit. After the summit ended, the world can’t stop talking about it.
The summit was under threat as there was a huge number of North Korean nuclear and missile tests and angry exchanges between Donald and Kim last year that fueled fears of war. However, it took place on June 12. It was the first summit between a sitting US president and a North Korean leader. And Mr. Trump can’t stop admiring his agreement with the North Korean leader.
Donald Trump assured that North Korea is not a nuclear threat anymore, both countries are far from a war now and citizens can be calm.
Also, the US president promised he would halt joint military exercises with South Korea while talks were ongoing with North Korea. But the joint statement doesn’t have the information on joint exercises, mentioning only unspecified U.S. “security guarantees” toward North Korea.
It can seem that the US and North Korea made a great step toward an effective relationship. However, US sanctions on North Korea are still in force. According to Mr. Trump, he would like to lift the sanctions, however, it wouldn’t happen immediately.
Moreover, not everyone is so excited about the agreement. According to analysts, the statement that was signed by two leaders means nothing. First of all, analysts noticed a lack of details. Secondly, they are sure that all four main points were in the previous documents with North Korea and the North Korean leader had done nothing now to show he could be trusted.
But Donald Trump doesn’t sleep and tweets more and more.
Mr. Trump declared his willingness to invite Kim Jong-un to White House very soon. Let’s see whether we will get more details from these two guys.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.