We just entered one of the busiest weeks for the markets with four policy meetings ahead and a plethora of macro-updates which are expected to rock the market. Federal Reserve has its policy meeting and is expected to raise rates while Bank of England has the first meeting after U.K. snap election that decreased political instability. Swiss National Bank and Bank of Japan will also revise their monetary policy whilst they are expected to keep rates unchanged.
Monday starts quietly as usual with limited news. It is a public holiday in Australia, thus liquidity will be thin to AUD pairs. Moreover, we have no major events or indicators coming out from the Eurozone or the U.S. The only noteworthy indicator is U.S. monthly budget statement for May. After midnight, National Australia Bank will publish its business confidence survey for May.
Tomorrow, the economic calendar is looking pretty busy. Early in the European morning, attention will be in U.K. where the consumer and retail price indexes are coming out. The consumer prices are expected to keep the same pace of growth in May, as in April, of 2.7% compared to the year before. Since March, U.K. CPI is above Bank of England’s inflation target and is not showing signals of slowing down.
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Read the full weekly market outlook on JFD Research.