10. IP vs. AI: OpenAI has agreed to pay News Corp., the mass media company, for the rights to 'farm' data and written content from publications like the Wall Street Journal and other notable brands. OpenAI will compensate the media giant around 250 million USD over the next five years. Question, does this legally imply that all Artificial Intelligence companies will eventually have to pay for 'scraping' Intellectual Property from all resources they take information?
9. Memorial Day: The U.S will observe its commemoration for fallen soldiers this coming Monday. The long holiday weekend will affect financial markets later today with lighter than normal trading, and volumes will be very thin in Forex and many commodities early next week.
8. India: The 6th phase of India's national election will be held tomorrow. The 7th and final polling date is the 1st of June. There are murmurs that Prime Minister Narendra Modi's Bharatiya Janata Party is losing some ground and will not be able to attain a super majority in the Lok Sabha.
7. Moment of Lunacy: The United Nations observed a moment of silence for Iran's deceased President and Foreign Minister who died earlier this week in a helicopter crash, while failing to mention the majority of citizens in Iran who live unwillingly under the Iranian Islamic Republic's oppression.
6. 29th of May: The South Africa election will be held next Wednesday. After governing the nation since 1994, the African National Congress appears to have a fight on its hands to sustain power without having to use a coalition. Dangers abound regarding potential political alliances which might have to be formed. The USD/ZAR will certainly endure volatility in the days ahead, and geopolitical influences should be monitored in the weeks to come. Can a tranquil compromise be attained?
5. FOMC Meeting Minutes: Wednesday's publication of the Federal Reserve's decision making process rumpled some feathers in financial institutions regarding the central bank's laser focus on inflation. However, traders should not have been surprised. While the outlook for the Federal Funds Rate has seemingly shifted within financial institutions to hopes of a more dovish policy, equity indices and Forex will continue to amplify a battle between short and mid-term speculative and investment positions that gyrate on power generated from fundamental economic reports and technical perspectives.
4. Gold: The precious metal is near 2,340.00 USD as of this writing, this after attaining an all-time record value around $2,450.00 per ounce this past Monday. Risk appetite is certainly high in the financial markets. Day traders need to understand large speculative forces can move commodities and other assets with lightning speed when big volumes and changes to behavioral sentiment collide.
3. Data and the G7: Today's Consumer Sentiment and Inflation Expectations readings should be watched from the University of Michigan. Weaker than anticipated results could solidify a bearish trend for the USD. However, traders should also keep in mind the G7 meetings taking place as they monitor global events, they should also remember to eliminate the hyperbole that may come from some politicians today and tomorrow in Italy as pronouncements come from the conference.
2. U.S Debt Burden: As the U.S election draws closer, investors are likely to hear more about the growing U.S debt which is certainly increasing too rapidly. 34 trillion USD in public debt is owed by the U.S government. It is a monumental number and growing larger on a daily basis. The U.S must start to get its fiscal house in order. The ratio of 124.7% of U.S debt to Gross Domestic Product is eye catching, it is still less than many major countries but still troubling. Japan's ratio is about 263%. However, the U.K's ratio is less and standing at 85.4%.
1. Devaluation: USD/JPY as of this writing is hovering near 157.000. There has been talk among financial institutions regarding the belief that China is quietly devaluing the USD/CNY to gain an advantage in export ability. But little mention has been made of Japan's devaluation of the Japanese Yen to accomplish the same goal. The USD/JPY remains in remarkably high territory and the currency pair needs to be treated carefully by day traders as the Bank of Japan maneuvers policy to accomplish economic goals.
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