The Federal Reserve’s latest rate hike is expected to keep markets on edge in the holiday-shortened week ahead. Wall Street will be closed on Monday, with markets observing Juneteenth for the first time.
The U.S. central bank on Wednesday raised its benchmark interest rate by 75 basis points, the largest increase in nearly three decades. Fed Chair Jerome Powell also hinted at more aggressive tightening ahead as policymakers ratchet up their fight against inflation.
While the Fed’s unprecedented action Wednesday reiterated its commitment to normalizing price levels, investors, and economists fear this also increased the risk its inflation-fighting measures may tip the economy into a recession.
All eyes will remain Powell in the coming week, with the Fed chair set to testify before the U.S. Senate Banking Committee Wednesday morning.
The Fed chief has remained adamant that the U.S. economy can avoid an economic slowdown, even as market participants lose confidence at the prospect of a “soft landing” – a period when economic growth is slowed just enough to quell inflation but without spurring economic downturn.
U.S. President Joe Biden said on Saturday that he was considering lifting some tariffs on China and a possible pause on the federal gas tax to fight inflation.
In other news, Bitcoin extended its slide and fell below $20,000 for the first time since December 2020 over the weekend. BTC/USD ended up losing more than 20% on a weekly basis and was last seen trading within a touching distance of $20,000. Ethereum recovered modestly after having dropped below the key $1,000 mark on Saturday but failed to gather further momentum.
This Week’s High Impact Events
The times below are GMT +3.
Monday 20th June
16.00 – Europe – ECB President Lagarde Speaks
Potential instruments to Trade: EUR Crosses.
18.00 – Europe – ECB President Lagarde Speaks
Potential instruments to Trade: EUR Crosses.
19.45 – US – FOMC Member Bullard Speaks
Potential instruments to Trade: USD Crosses.
Tuesday 21st June
03.00 – Australia – RBA Gov. Lowe Speaks
Potential instruments to Trade: AUD Crosses.
04.30 – Australia – Monetary Policy Meeting Minutes
If you have any questions or require any assistance, please contact one of our support team members via our Live Chat or email [email protected].
We are Errante. Trading made personal.
Errante is the trading name used by Notely Trading Ltd, an Investment Firm authorized and regulated by the Cyprus Securities and Exchange Commission (CySec) under license number [383/20]. Errante is governed by the Markets of Financial Instruments Directive (MiFID II) of the European Union.
Notely Trading Limited is an Investment Firm authorized and regulated by the Cyprus Securities and Exchange Commission (CySec) under license number 383/20, registration number HE394425 and with registered office at 30 Karpenisiou, 1077 Nicosia, Cyprus. The Company is governed by the Markets of Financial Instruments Directive (MiFID II) of the European Union.
The website (www.errante.eu) is operated by Notely Trading Ltd.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.00% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Read our Risk Disclosure.
Errante brand is authorised and regulated in other jurisdictions:
Errante Securities (Seychelles) Ltd (https://errante.com/) is regulated by the Seychelles Financial Services Authority (FSA) under license number SD038.
Errante is a Trademark owned by an entity of the Errante Group. All other trademarks that appear on this website are the property of their respective owners.
Regional Restrictions: Notely Trading Ltd currently provides its services on a cross-border basis within EEA states under the MiFID regime. We do not provide our services to residents of certain jurisdictions including, but not limited to, USA, Syria, Japan, North Korea, Iraq, Belgium, and Canada. The Company holds the right to alter the above lists of countries at its own discretion.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.00% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.Read our Risk Disclosure.
Functional Cookies help a site work well, they enable additional features which can make the user experience better.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
Analytical and Promotional Cookies
Analytical cookies are used to determine usage of a site, they may track individual users, but only to the extent to allow a proper user journey through the site. They are not used for targeting adverts.
Promotional cookies keep track of information to tailor advertisements to you and to measure their success. This includes using previously collected information about your interests to select ads, processing data about what advertisements were shown, how often they were shown, when and where they were shown, and whether you took any action related to the advertisement, including for example clicking an ad or making a purchase.
Please enable Strictly Necessary Cookies first so that we can save your preferences!
Cookies are small pieces of information, normally consisting of just letters and numbers, which are automatically stored on your computer (or any other devise used to enter the Internet) when you visit a website and offer an insight your activity and preferences.