This week's economic calendar is brimming with potential market-moving events, offering insights into key economic indicators. Alongside the upcoming Federal Reserve meeting, which will feature the central bank's summary of projections, or "dot plot," investors eagerly anticipate the release of the latest Consumer Price Index (CPI), providing a crucial update on inflation trends.
Below is the comprehensive weekly economic calendar highlighting the most significant upcoming economic reports slated for release over the next few days.
🇬🇧 Claimant Count Change — June 11, at 09:00 GMT+3
Tuesday is gearing up to be a notable day for economic updates, with the upcoming release of the British Claimant Count Change data. With a forecast of 8.3K, this figure will be closely watched by market participants, especially after the previous result of 10.9K. Of interest is its potential impact on the GBP/USD currency pair.
Currently, GBP/USD is seen recovering some lost ground around 1.2725 during early Monday trading. However, the upside of the pair may be limited given the diminished expectations of US Federal Reserve rate cuts this year, following the release of stronger-than-expected US Nonfarm Payrolls data.
Investors will be eyeing the Claimant Count Change figures closely for any clues about the strength of the British economy, which could influence the direction of GBP/USD in the near term.
🇬🇧 GDP m/m — June 12, at 09:00 GMT+3
Wednesday marks another significant economic release with the British Gross Domestic Product (GDP) month-over-month data. With a forecast of 0.0% for the month, this figure will be closely watched, particularly after the previous result of 0.1%. Once again, attention will be focused on the GBP/USD currency pair and the FTSE100 index.
GBP/USD remains a key focal point, with recent movements indicating a certain level of volatility. Meanwhile, the FTSE100's performance may also be influenced by the GDP data as investors gauge its implications for the British economy.
Traders will be keen to assess whether the GDP figure aligns with expectations and how it might impact both currency and equity markets.
🇺🇸 CPI and Core CPI m/m — June 12, at 15:30 GMT+3
Wednesday is set to be a bustling day for economic data, with the release of the Consumer Price Index (CPI) for May scheduled in the morning, preceding the Federal Reserve's interest rate announcement.
Market analysts will closely scrutinize the latest CPI inflation report, particularly following April's data revealing a decline in inflation to 3.4%. This previous report offered investors and consumers optimism that prices might be showing signs of cooling after an earlier surge this year.
Federal Reserve officials have emphasized the importance of observing further data indicating a moderation in prices before considering any interest rate cuts.
🇺🇸 Fed Interest Rate Decision — June 12, at 21:30 GMT+3
The Federal Reserve's impending meeting is unlikely to result in any shifts in monetary policy, with interest rates expected to hold steady within the 5.25-5.50% range.
This stance has persisted since last July as a measure to counter inflation. Market sentiments regarding a potential rate cut are predominantly focused on September, although recent labor market data showing stronger-than-expected job growth has slightly dampened these expectations.
This anticipation of status quo from the Fed is likely to influence various financial markets. For instance, in the forex market, it may stabilize the EUR/USD pair. In the commodities market, it could impact the price of gold, potentially keeping it within a certain range. In equities, indices like the Nasdaq, Dow Jones, and SPX500 may experience minimal fluctuations as investors await clarity on the Fed's stance, with any deviation from expectations potentially triggering more pronounced movements.
🇯🇵 BoJ Interest Rate Decision — June 14, at 05:30 GMT+3
Friday brings the highly anticipated Bank of Japan (BoJ) Interest Rate Decision, a release that has investors on edge amid expectations of further increases in yields and volatility in Japan’s sovereign bond market. Central bank officials are reportedly contemplating reducing their massive debt holdings, which has heightened market speculation.
This potential shift in monetary policy has already led to fluctuations in benchmark 10-year yields, which spiked to 1.1% last month, reaching levels not seen since 2011, before retracing roughly half of the gains. Concerns about reduced BoJ debt purchases have also manifested in the narrowing spread between overnight-indexed swaps used for hedging and 10-year notes, hitting the narrowest point since 2022.
Amidst these developments, investors will keep a close eye on the USD/JPY currency pair, as any shifts in BoJ policy could impact the exchange rate between the US dollar and the Japanese yen.
That's it for this week! 👋
