This week's primary focus is Jerome Powell's speech to Congress and ECB officials. Friday's Eurozone inflation data showed a sharp increase in consumer prices, so now it is essential to see how aggressively the ECB will behave and whether there are discussions about a 0.5% rate hike at the July meeting. Also, the UK, Canada, and Japan will update the inflation data for May, while the Reserve Bank of Australia will publish the minutes of the monetary policy meeting.
Monday, June 20
The main focus of investors on Monday will be the data from China. PBoC is on its way to easing monetary policy, so a reduction in the key rate could cause the yuan to fall. European Central Bank President Christine Lagarde will appear before the European Parliament on Monday to answer questions about the bank's new crisis response tool. It’s a bank holiday in the United States.
Main events of the day:
- – China PBoC Loan Prime Rate (m/m) at 04:15 (GMT+3);
- - Eurozone ECB President Lagarde Speaks at 16:00 (GMT+3);
- - Eurozone ECB President Lagarde Speaks at 18:00 (GMT+3);
- - US FOMC Bullard Speaks at 19:45 (GMT+3).
Tuesday, June 21
The Reserve Bank of Australia will update its monetary policy statement on Tuesday. There may be hints of monetary policy tightening in this report, so it is important to watch for changes. Traders should also pay attention to Canada's Retail Sales data.
Main events of the day:
- – Australia RBA Governor Lowe Speaks at 03:00 (GMT+3);
- – Australia RBA Meeting Minutes (m/m) at 04:30 (GMT+3);
- – Canada Retail Sales (m/m) at 15:30 (GMT+3);
- – US Existing Home Sales (m/m) at 17:00 (GMT+3);
- – US FOMC Mester Speaks at 19:00 (GMT+3).
Wednesday, June 22
Wednesday's main event will be the Consumer Price Index data in the United Kingdom and Canada. Analysts expect to see an increase in inflation in both countries. An increase in the consumer price index tends to cause the national currency to rise in anticipation that the central bank will tighten monetary policy. Also, traders should not miss Jerome Powell's speech to Congress on further plans to tighten monetary policy.
Main events of the day:
- – UK Consumer Price Index (m/m) at 09:00 (GMT+3);
- – UK Producer Price Index (m/m) at 09:00 (GMT+3);
- – Canada Consumer Price Index (m/m) at 15:30 (GMT+3);
- – Switzerland SNB Chairman Thomas Jordan speaks at 16:00 (GMT+3);
- – US Fed Chair Powell Testifies at 16:30 (GMT+3).
Thursday, June 23
On Thursday, there will be a lot of different statistics on the manufacturing and Services PMI for different countries. Evaluating these indicators is very simple - if the PMI falls below 50, it is a sign that the sector is slowing down to the point of recession. If it is above 50, it indicates that the sector is in good shape. Also, Thursday is the second day of Jerome Powell's Congressional Hearing.
Main events of the day:
- – Australia Manufacturing PMI (m/m) at 02:00 (GMT+3);
- – Australia Services PMI (m/m) at 02:00 (GMT+3);
- – Japan Manufacturing PMI (m/m) at 03:30 (GMT+3);
- – Singapore Consumer Price Index (m/m) at 08:00 (GMT+3);
- – Eurozone French Manufacturing PMI (m/m) at 10:15 (GMT+3);
- – Eurozone French Services PMI (m/m) at 10:15 (GMT+3);
- – Eurozone German Manufacturing PMI (m/m) at 10:30 (GMT+3);
- – Eurozone German Services PMI (m/m) at 10:30 (GMT+3);
- – Eurozone ECB Economic Bulletin at 11:00 (GMT+3);
- – Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+3);
- – Eurozone Services PMI (m/m) at 11:00 (GMT+3);
- – UK Manufacturing PMI (m/m) at 11:30 (GMT+3);
- – UK Services PMI (m/m) at 11:30 (GMT+3);
- – Eurozone EU Leaders Summit at 13:00 (GMT+3);
- – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
- – US Manufacturing PMI (m/m) at 16:45 (GMT+3);
- – US Fed Chair Powell Testifies at 17:00 (GMT+3);
- – US Natural Gas Storage (w/w) at 17:30 (GMT+3);
- – US Crude Oil Reserves (w/w) at 18:30 (GMT+3).
Friday, June 24
Friday's most important release for investors will be Japan's inflation rate data. Analysts predict that the inflation rate will remain at the same level. But suppose the data turn out to be higher than forecast. In that case, it could strengthen the Japanese yen to expectations that the Bank of Japan will begin to prepare to normalize monetary policy. In any case, volatility in currency pairs with the Japanese yen will increase. Traders will also look for the Ifo report on Germany's business climate, which nicely demonstrates what shape the German economy is in right now. It's a bank holiday in New Zealand.
Main events of the day:
- – Japan National Core Consumer Price Index at 02:30 (GMT+3);
- – UK Retail Sales (m/m) at 09:00 (GMT+3);
- – Eurozone German Ifo Business Climate Index (m/m) at 11:00 (GMT+3);
- – Eurozone EU Leaders Summit at 13:00 (GMT+3);
- – Australia RBA Governor Lowe Speaks at 14:30 (GMT+3);
- – US FOMC Bullard Speaks at 14:30 (GMT+3);
- – US New Home Sales (m/m) at 17:00 (GMT+3).
by , 2022.06.20
We advise you to get acquainted with the daily forecasts for the major currency pairs.This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
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