SHANGHAIM, Jun. 20 (SMM) – Attention should be on Germany’s annual PPI in May, US Federal Reserve’s officials’ and Secretary of the Treasury’s speeches and address from Bank of England Governor and Chancellor of the Exchequer on Tuesday. Base metals increased across the board on Monday’s night trading, except tin, but those metals may fall back after meeting resistance at the moving average.
Germany’s annual PPI increased constantly from April 2016, with growth up to as high as 3.4% in April 2017. However, CPI stopped rising since February 2017 and its growth fell to the year’s lowest level at 1.5% in April 2017. If the PPI declines in May, it will raise market anticipation on European Central Bank’s loose monetary policy. Besides, eurozone’s annual CPI growth also registered the year’s lowest level at 1.4% in May. This will weigh down euro and shore up US dollar index.
SMM Price Outlook for Base Metals on SHFE (Jun. 20, 2017)
Results of some economic data from US fell short of market forecast recently, but Fed officials released hawkish comment, underpinning US dollar index.
Meanwhile, market participants are suggested to eye on UK’s Brexit negotiation and officials’ speech will affect market sentiment and dominate pound movement.
