In the upcoming week, beginning June 10, global markets are poised to react to a series of significant events affecting FX and bond markets across various regions.
In the United States, all eyes are on the U.S. Federal Reserve’s interest-rate decision scheduled for Wednesday. Market expectations lean towards rates remaining unchanged due to ongoing concerns about high inflation levels. Instead, investors will closely analyze the Fed’s ‘dot plot’ and any commentary hinting at future rate adjustments. Additionally, U.S. inflation data for May, set to be released on Wednesday, will be scrutinized for signs of economic slowdown, alongside Thursday’s producer prices data and weekly jobless claims. The U.S. Treasury will also conduct several bond auctions throughout the week.
Across Latin America, investors await Brazilian inflation data for May, providing insights into regional inflation trends.
In the Eurozone, attention is on final inflation figures from major economies like Germany, Spain, and France, expected throughout the week. Industrial production figures for April and trade data on Friday will offer further insights. Additionally, bond auctions are scheduled in various Eurozone countries.
In the United Kingdom, Tuesday brings the release of crucial jobs data, offering insights into wage inflation trends. Wednesday sees the release of monthly GDP data for April, alongside industrial output figures. The Royal Institution of Chartered Surveyors’ house-price survey is expected on Thursday.
In Scandinavia, investors await May inflation data from Norway and Sweden, with a focus on Norway’s CPI and CPI-ATE figures and their implications for monetary policy.
Switzerland is set to hold its monthly bond auction on Wednesday.
In Japan, final estimates for first-quarter GDP will be released, potentially confirming a contraction in the economy. The Bank of Japan’s monetary policy decision on Friday will be watched closely for any hints of quantitative tightening.
China’s consumer and producer price data for May will provide insights into inflationary pressures amid recent policy measures. Credit data and an announcement from the People’s Bank of China are also scheduled.
Thailand’s central bank decision on Wednesday faces pressure amidst calls for rate cuts to stimulate growth.
Taiwan’s central bank will be observed after recent inflation readings signaled a possible pause in rate hikes.
Australia and New Zealand will see the release of jobs data for May and inflation data for May, respectively, providing insights into monetary policy considerations.
In India, CPI data for May will be watched for indications of price pressures and their impact on monetary policy decisions.