FX Week Ahead: Highlights Include FOMC, BOC And OPEC

Politics dominate yet again, as focus on Comey testimony set to determine Trump and USD fate.  Fed minutes and OPEC meeting on the same day with the BoC thrown in!  EUR on the front foot and leading the pack as growth and inflation stats heighten tapering expectations, greenback flagging.

Frontrunning: May 22

  • Trump Arrives in Israel, May Show His Cards on the Peace Process (BBG)
  • Taxes, Budget Are Focus for White House Despite Probes (WSJ)
  • Paul Manafort’s Lucrative Ukraine Years Are Central to the Russia Probe (BBG)
  • Ford set to fire CEO Mark Fields as shares founder (Reuters)
  • Producers Set to Extend Cuts as Rally Stalls: OPEC Reality Check (BBG)

Bill Blain: "My Prediction Is That Around October 12 Markets Will Get Horribly Interesting"

"There are just too many contradictory currents out there. The unsustainability of burgeoning consumer debt, unfeasibly tight credit spreads, the sandcastle foundations of student loans, autos, housing and the CLO market, China, Trump, politics.. worries about what follows Brazil in the EM market, and whatever... The risks of a massive consumer sentiment dump."

In Major Shake Up, Ford Fires CEO Mark Fields As Punishment For Declining Stock Price

Confirming weekend rumors of a dramatic management shakeup at Ford, late on Sunday Forbes reported that Ford would replace CEO Mark Fields with Jim Hackett, the former head of office-furniture maker Steelcase who joined the auto maker in 2016. Fields leaves after a 28-year career?at Ford, including a prominent tenure as the head of the company’s North American operation.

Asia Jumps, Europe Stutters As Political Rumblings Return; Oil Nears $51

Global stocks were mixed to start the week, with Asian stocks higher, European stocks initially advancing then fading gains, while S&P futures are little changed after the biggest weekly drop since April (which for those keeping record was -0.4%). European shares, the euro and the pound all stumbled on Monday as rumblings in Spain, Britain and Brussels reminded investors that the region still has plenty of political uncertainty left in the tank.

Euro Surges After Merkel Says Euro Is "Too Weak", Blames ECB

“The euro is too weak - and that’s because of ECB policy  - and so German products are cheap in relative terms,” Merkel told school students in Berlin in discussion of trade surplus. “So they’re sold more.” Merkel added that additional investment in Germany could help to reduce trade surplus.

"Baizuo" Is The New Derogatory Term Millions Of Chinese Are Using To Describe America's "White Left" Regressive Liberals

After the last election, the far-left in our society became a laughing stock. The social justice warriors, the progressives, the regressive left; whatever you want to call them, they became a joke after Trump was elected. However, it may surprise you to learn that these people aren’t just a joke in America. They are the laughing stock of the world.