US Congress Meeting on the Debt Ceiling:
The White House announced the postponement of the US Congress meeting, which was scheduled to take place on Friday 12th May 2023 to discuss raising the debt ceiling, until the beginning of this week. Currently, Democrats and Republicans are sharply divided on the issue of raising the debt ceiling. Republicans in Congress demand that Biden agrees to cut spending before they agree to raise the debt ceiling of $31.4 trillion.
Meanwhile, the Democrats call for raising the ceiling without any restrictions, noting that the failure of the United States to pay its debts may lead to a rise in global economic concerns.
Oil Records its Fourth Consecutive Weekly Loss:
Oil prices fell for the fourth week in a row, the longest series of weekly declines since November 2021. The decline came after mounting economic concerns and the return of banking crisis fears in the U.S. along with weak economic data in China, the world’s largest consumer of oil.
Markets are now awaiting June’s OPEC+ meeting as expectations of additional supply cuts gain momentum.
This Week’s Most Important Data
Markets are anticipating this week's speech by Jerome Powell, Chairman of the Federal Reserve. ECB President Lagarde and BoE Chief Bailey also take center stage to discuss their views and economic expectations, in addition to comments about future monetary policy.
The most important data to be released this week include Retail Sales data in the United States, along with the NY Empire State Manufacturing Index, CPI data in Canada, and Crude Oil Inventories from the U.S.
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