Summary:

• GBP advances significantly amid absence of the UK traders

• Benchmark from Wall Street opened higher and surged afterwards

• Chinese trade balance data to be released overnight

The time is running out for the NAFTA negotiators if they want to strike a deal before the political calendar disturbs talks. This week may be crucial yet the talks are still far from being over as discrepancies between countries remain in some of the key areas. Moreover, a passage of some of the US proposals may doom North American businesses to uncertainty every five years.

May 12 could  be a crucial day not just for oil prices but for the broad markets in general.Donald Trump has just 5 days to decide whether to stop waiving sanctions as agreed under the Joint Comprehensive Plan of Action. A return of sanction on Iran could cause a spike in oil prices as 1.3mbd of output would be at risk.

Warren Buffett’s remarks drew attention over the weekend as the famous fundamental investor dubbed Bitcoin “rat poison” admitting at the same time he did not understand the blockchain technology. He alluded to cryptocurrencies during the Berkshire Hathaway 2018 annual shareholder meeting in Omaha, Nebraska on Saturday.

Italian President Sergio Mattarella has begun the final round of government talks today. A meeting between the President and representatives of the political parties is a last call towards forming a new government. In case the talks fail to deliver a solution to the ongoing political deadlock Mattarella may ask parties to form a transitional government with non partisan PM.

On the currency front we can conclude that the Australian dollar has been by far the weakest currency so far losing almost 0.3% against the US dollar which has begun this week’s trading a bit lower. The Antipodean currency could have been afflicted by weak construction PMI for April as it slid to 55.4 from 57.2.

Technical analysis of the German DAX can be found here.