• Sentiment soured in Asia after Trump cast doubts over NK summit and expressed dissatisfaction regarding trade talks with China
• In FX, JPY was a beneficiary of safe-haven flows. USD flat. TRY experienced a ‘flash crash’ which saw the currency drop over 2.5% against the greenback
• Looking ahead, highlights include EZ Mfg and Services PMIs, UK CPI, US New Home Sales, DOEs, FOMC minute and a slew of speakers

ASIA

Asian equity markets traded mostly...

• Asian stocks traded mostly subdued amid holiday closures and a lack of fresh catalysts. DXY was sideways around 93.50 following its recent pullback from YTD highs
• Italy’s President Mattarella reportedly expressed concerns with the 5SM/League fiscal plan and is said to need time to mull the PM choice
• Looking ahead, highlights include BoE QIR testimony, ECB’s Liikanen, UK/EU trade talks and US 2yr Note Auction

TRADE

US and China said to have...

• Asian equity markets traded mostly positive with sentiment underpinned following the conclusion of the 2nd round of US-China trade talks
• China agreed to purchase more goods to avoid a trade war. Mnuchin announced that tariffs on China would be placed on hold as discussions progress
• Looking ahead, highlights include ECB’s Nowotny, Fed’s Bostic, Harker and Kashkari
• Due to Whit Monday, markets in Austria, Denmark, Germany, Hungary, Iceland, Norway, and Switzerland are...

• Asian stocks traded mostly positive but with gains contained as focus remained on US-China trade talks and the current geopolitical climate
• The Chinese trade delegation was said to offer a package to reduce the US trade deficit by USD 200bln annually
• Looking ahead, highlights include Canadian CPI, retail sales, Fed’s Mester, Kaplan and Brainard

TRADE

US President Trump stated on Thursday stated that China will not be ripping the US anymore and...

• FED: Fed chair announcement to overshadow FOMC meeting
• ECB: Draghi pulls-off magic act
• BOE: MPC to hike for the first time in a decade
• BOJ: Policy meeting likely to be a snooze fest
• BOC: Cautious BOC enters data-dependent mode
• RBA: Cyclical upswing still missing
• RBNZ: Labour market data to do little to sway RBNZ
• Norges Bank: Move on, nothing...

FEDERAL RESERVE (FED)

• Attention this week will be on the Q&A part of Fed chair Janet Yellen’s semi-annual testimony to Congress (House Financial Services Committee on 12 July and Senate Banking Committee the next day). The Fed’s Monetary Policy Report, released Friday, provided little new information, reiterating gradual hikes, and gradual reduction of the balance sheet when it begins later this year. Indeed, the report largely echoed recent comments from Fed policymakers, as well as...

Click here for the RANsquawk Week Ahead Eco Preview, 26 to 30 June 2017

FEDERAL RESERVE

• The abundance of Fedspeak last week did little to persuade the market to shift towards the FOMC’s hiking trajectory – which has pencilled in seven additional 25bps hikes tspanough the end of 2019; Fed Funds Futures, on the other hand, see just two more hikes over that horizon.

• An acceptance of the need to be patient was generally evident in the tone of the 2017...

RANsquawk Weekly G10 Central Bank Monitor can be accessed here

NORTH AMERICA

TUE 20 JUN 2017 - 1330BST: US CURRENT ACCOUNT BALANCE (Q1)

Forecast: The deficit is seen narrowing to USD 124.9bln vs a deficit of 112.4bln prior.

WED 21 JUN 2017 - 1500BST: US EXISTING HOME SALES (MAY)

Forecast: 5.55mln vs prior 5.57mln. Both new and existing home sales slipped in April,...

RANsquawk's Eco Week Ahead can be accessed here

FEDERAL RESERVE

• As expected, the FOMC hiked rates by 25bps to 1.00-1.25% – the second hike of 2017, and the fourth in the current tightening cycle. Minneapolis Fed President Neel Kashkari was the lone dissenter, once again.

• The revisions to its economic projections were mostly in-line with the market view: near-term growth was raised, but the Fed is more pessimistic than analysts in...

FEDERAL RESERVE

• A 25bps hike to the Federal Funds Rate target on 14 June 2017 is pretty much a done deal, with money markets pricing in a 99.6% chance that rates will be lifted for the second time this year to 1.00-1.25%. The real question is whether the Fed will maintain its “gradual” hike trajectory, which sees a total of tspanee rate rises per annum in 2017, 2018 and 2019.
• The FOMC will also update its economic projections, which aren’t likely to see any dramatic changes in...