All Eyes On Jerome Powell (Fed), UK Inflation Rate And Eurozone | Conotoxia

ECB's Dovish Shift: Markets Anticipate Softer Policy Guidance

This week, the attention of investors in the US may be captured by speeches of representatives of the Federal Reserve. On Wednesday, the focus will be on Fed Chairman Jerome Powell's testimony before the Senate committee, and on Thursday - before the House of Representatives.

In the US, the economic calendar seems relatively modest and includes: the release of data on sales of existing and new homes, the preliminary reading of the S&P Global PMI and the final report of the University of Michigan on consumer sentiment. The start of the week, however, will be quiet for the US stock and bond markets as these markets will be closed on Monday due to the Juneteenth holiday.

In contrast, in the UK, the economic calendar is packed with key data such as inflation rate, retail sales, Gfk consumer confidence and S&P global PMIs.

UK CPI inflation is expected to have risen 9.1 percent in May from a year earlier, accelerating from the 9 percent level reached in April this year and the highest level in 40 years. This could be another signal for possible further interest rate hikes in England.

In Europe, we will learn flash PMI data for the Eurozone, Germany and France. Forecasts suggest that factory activity growth hit a 19-month low at the end of the second quarter, and the service sector expanded at its weakest pace in four months. Eurozone's consumer confidence likely rose in June from a two-year low reached in April. Germany's Ifo business climate index may fall slightly, mainly due to deteriorating current conditions. The coming week will also see central bank meetings in Turkey, Norway, the Czech Republic and Iceland.

In Australia, PMI data for June will be published, but the focus may be on the minutes of the latest RBA meeting. In Japan, CPI data for May and June PMI data may draw attention.

Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Conotoxia investment service)

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Another hot week in financial markets (

ECB's Dovish Shift: Markets Anticipate Softer Policy Guidance

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