The President of the United States said that the two have made a big progress and that the meeting went better than he anticipated. They are both hoping for a historic deal to end the nuclear standoff crisis at the Korean peninsula.
How Markets React
The US Dollar rose versus the Yen, the Koren Won went up almost 0.2% while the Asian equity Markets were more volatile than usual with the Nikkei getting some gains of about .5%. The euro retraced from a three week high of $1.1840 to about 0.1% at $1.1791 and the Spot Gold went down about 0.2 % to $1,297.31 an ounce.
Analysts at OCBC stated " The key question is whether this summit will lead to a lasting, materially positive outcome"
The real question here is whether markets getting more balanced after the end of the summit or will Investors gain more trust?
Many investors have their hopes pretty low after the summit and believe that the summit was not successful.
Robert Carnell, a chief Asia-Pacific economist at ING said " So today, we have the opportunity for a historic meeting, a possible end to the Korean war, and a possible move to denuclearize, and maybe even demilitarize the Korean peninsula. All of that's great, but how can you make money from it. Well, the short answer is you probably shouldn't even try."
Also, Robert Carnell after the meeting of the G7 said that "existential global threat" is the tariffs and those are a bigger threat.
The busy week ahead may give investors some clues of what might happen with the global economy as the U.S. Federal Reserve policy meetings and the European Central Bank are next, as well as the Brexit bill vote. The U.S. Federal Reserve is almost certain to raise interest rate next week but investors will focus on the central bank's outlook for 2018.
Goldman Sachs forecast that the Fed will hike rates three and four times in 2018 and 2019, respectively.
Gold Prices remain vulnerable on the anticipation for the upcoming U.S. Federal Reserve meeting which means that gold may be bearish as its struggle to compete with yield-bearing assets when rates rise.
On the other hand, Gold could find some support from safe-haven buying as markets try to recover from the aftermath of trade tensions and the G7 Meeting.
Other reports to watch this week include the U.S. inflation, retail sales and industrial production.
This article was written by Marios Athinodorou, TeleTrade 's market analyst, and commentator.Among others, Marios is delivering weekly trading webinars. Sign up for upcoming webinars here .
This article was originally posted on FX Empire
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