Economic calendar: Attention focused on politics

• Trumps threatens to deploy more US troops to handle riots

• Australian GDP seen falling 0.3% QoQ in Q1 2020

Economic calendar is almost bare on Tuesday. Reading scheduled for release, like Swiss retail sales or Czech GDP, seldom sees any market reaction. Oil could move a notch on API data release but one should not expect too much. However, there are a lot of other issues that are worth paying attention to, like US riots, China-US tensions or the next round of EU-UK trade talks.

US riots seem to be the most important for now as the situation is the most dynamic.Unless riots ease, Donald Trump will deploy more troops to US cities in order to restore peace (and potentially impose a martial law). Note that looting and destruction of private property is having an overall negative impact on growth therefore post-Covid recovery may be put under question unless the situation is calmed quickly.

Nevertheless, traders should also keep in mind that yesterday's reports saying that China plans to drop purchases of US farm products may trigger a retaliation from the United States if confirmed.

European & US session

7:30 am BST - Switzerland, retail sales for April. Expected: -4.9% YoY. Previous: -5.6% YoY

8:00 am BST - Czech Republic, GDP report for Q1 2020 (revision). First release: -3.6% QoQ

9:00 am BST - Norway, manufacturing PMI for April. Expected: 56 pts. Previous: 42 pts

9:40 pm BST - API report on oil inventories. Expected: -1 mb. Previous: +8.7 mb

Asian session

2:30 am BST - Australia, GDP report for Q1 2020. Expected: -0.3% QoQ

2:45 am BST - China, manufacturing PMI for May. Expected: 47.3 pts. Previous: 44.4 pts