The Week Ahead: 7th -11th June 2021

Overview for the Week Ahead

This week is set to be a relatively quiet one for investors in terms of economic data releases and earnings reports. Officials from the Federal Reserve will also enter their “blackout period” ahead of their June policy-setting meeting. 

Asian stocks were steady and U.S. equity futures edged lower Monday as traders weighed Janet Yellen’s comments on higher interest rates and awaited this week’s U.S. inflation report. 

New data on consumer price inflation will be of interest, since market participants have been looking for signs that the post-pandemic recovery is generating a surge in prices amid supply chain and labour shortages and booming demand.  

The Labour Department’s May consumer price index (CPI) on Thursday will show the latest on these price trends for the average American. Consensus economists are looking for the index to register a 0.4% month-on-month increase after a 0.8% surge in April. And over last year, the headline CPI is expected to jump 4.7%, or by the most since 2008.  

Speculation continues that the U.S. recovery from the pandemic may be strong enough to prompt Federal Reserve discussions in the weeks ahead on tapering asset purchases. Traders are looking ahead to the U.S. consumer-price index report Thursday for more clues. 

The ECB meets on Thursday and will release its updated growth forecasts for 2021 and 2022. 

Policymakers will debate whether to prolong their support for the euro zone recovery through emergency stimulus, a decision that will hinge on how strong they believe the region’s economic recovery is. 

Recent dovish comments by several ECB policymakers have highlighted the risks of premature tightening. Any indication from ECB head Christine Lagarde that the debate on tapering is getting underway could push eurozone bond yields still higher and undermine the economic recovery in the bloc. 

With the planned full reopening of the UK economy on June 21 looking increasingly doubtful, investors will be paying close attention to Friday’s figures on monthly GDP growth. 

While the reopening of shops and the hospitality sector in April is unsurprisingly expected to have contributed to another solid monthly increase in growth, the recovery is likely to face its first real test over coming weeks as concerns surrounding the new ‘delta’ Covid-19 variant (first detected in India) grow. 

The latest estimates indicate that it may be 50% more transmissible than the previous dominant strain, which means that hospitalizations could rise rapidly among unvaccinated groups. 

While 50% of the population is now fully vaccinated there is likely to be a move to delay the planned reopening to allow for more vaccine coverage. 

This Week’s High Impact Events 

The times below are GMT+3.

Monday 7th June 

  • No High Impact Events Today 

Tuesday 8th June 

  • No High Impact Events Today 

Wednesday 9th June 

  • 07.00 – Australia – RBA Assist. Gov. Kent Speaks 

Potential instruments to Trade: AUD Crosses. 

  • 17.00 – Canada – BoC Rate Statement, & Overnight Rate 

Potential instruments to Trade: CAD Crosses.  

  • 17.30 – US – Crude Oil Inventories, & 10-Year Bond Auction 

Potential instruments to Trade: USD Crosses.  

Thursday 10th June 

  • 14.45 – Europe – Monetary Policy Statement & Main Refinancing Rate 

Potential instruments to Trade: EUR Crosses.  

  • 15.30 – Europe & US  – ECB Press Conference, CPI m/m, Core CPI m/m, & Unemployment Claims 

Potential instruments to Trade: EUR & USD Crosses.  

  • 20.01 – US – 30-Year Bond Auction 

Potential instruments to Trade: USD Crosses.  

Friday 11th June 

  • 17.00 – US – Prelim UoM Consumer Sentiment 

Potential instruments to Trade: USD Crosses. 

If you have any questions, please email our Education Centre.

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.

To find out more about Errante, visit https://errante.eu.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.50% 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.

Get started for free

Create Account
×

Search