The Week Ahead: 14th -18th June 2022

Overview for the Week Ahead

Central banks’ efforts to curtail runaway inflation will remain in focus this week.

The Federal Reserve will dominate the conversation for investors this week. The Federal Reserve and the Bank of England are expected to raise interest rates at their meetings and there is a chance the Swiss National Bank will do the same.

The central bank’s latest policy meeting will be held on Tuesday and Wednesday, June 14-15, with the Fed expected to announce at least another 0.50% increase in its benchmark interest rate on Wednesday afternoon.

Wednesday’s 21.00 GMT+3 policy announcement will be followed by a press conference with Fed chair Jerome Powell at 21:30 GMT+3. The Fed will also release its latest summary of economic projections on Wednesday, offering officials’ forecasts for GDP growth, inflation, and future rate hikes.

Following last Friday’s data on inflation, investors are now bracing for the potential of more aggressive interest rate increases from the Fed, perhaps as soon as this week.

The Bank of Japan (BoJ) has so far resisted pressure to tighten policy, weakening the country’s currency. The policy divergence has sent the yen down more than 15% against the dollar since early March.

The yen fell as much as 0.6% on the day to 135.22 yen per dollar, its lowest since 1998. It was last broadly flat at 134.37 yen per dollar.

Geopolitical watchers will continue to watch the Indo-Pacific as China continues to threaten war with Taiwan should Taiwan seek independence.

Things grew tense between China and the U.S. after Defence Secretary Lloyd Austin said on Saturday at the Shangri-La Dialogue in Singapore that while U.S. “policy hasn’t changed,” China has continued to issue a “steady increase in provocative and destabilizing military activity near Taiwan.” Austin said that “Indo-Pacific countries shouldn’t face political intimidation, economic coercion or harassment by maritime militias.”

In other news, Bitcoin dropped below $24,000 on Monday as the wider cryptocurrency market continues to fall.

The largest cryptocurrency by market value is trading at about $23,489, down 22% in the last seven days, according to CoinGecko. Ether, the second largest, is also down to about $1,235, dropping 32% in the same time frame.

Plan your trades carefully and have a great trading week!

This Week’s High Impact Events

The times below are GMT +3.

Tuesday 14^th June

15.30 – US – PPI m/m & Core PPI m/m

Potential instruments to Trade: USD Crosses.

Wednesday 15^th June

05.00 – China – Industrial Production y/y, & Retail Sales y/y

Potential instruments to Trade: CNY Crosses.

15.30 – US – Core Retail Sales m/m, Retail Sales m/m, & Empire State Manufacturing Index

Potential instruments to Trade: USD Crosses.

19.20 – Europe – ECB President Lagarde Speaks

Potential instruments to Trade: EUR Crosses.

21.00 – US – FOMC Economic Projections, FOMC Statement, & Federal Funds Rate

Potential instruments to Trade: USD Crosses.

21.30 – US – FOMC Press Conference

Potential instruments to Trade: USD Crosses.

Thursday 16^th June

01.45 – New Zealand – GDP q/q

Potential instruments to Trade: NZD Crosses.

04.30 – Australia – Employment Change, & Unemployment Rate

Potential instruments to Trade: AUD Crosses.

10.30 – Switzerland – SNB Monetary Policy Assessment, SNB Policy Rate, & SNB Press Conference

Potential instruments to Trade: CHF Crosses.

14.00 – UK – MPC Official Bank Rate Votes, Monetary Policy Summary, & Official Bank Rate

Potential instruments to Trade: GBP Crosses.

15.30 – US – Philly Fed Manufacturing Index & Unemployment Claims

Potential instruments to Trade: USD Crosses.

Friday 17^th June

Tentative – Japan – Monetary Policy Statement & BOJ Press Conference

Potential instruments to Trade: JPY Crosses.

09.00 – UK – Retail Sales m/m

Potential instruments to Trade: GBP Crosses.

15.45 – US – Fed Chair Powell Speaks

Potential instruments to Trade: USD Crosses.

Saturday 18^th June

23.40 – US – FOMC Member Waller Speaks

Potential instruments to Trade: USD Crosses.

For more information – https://errante.eu/economic-calendar/

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