A Busy Week For Trading: Focus On Fed Rate Decision

 Last week, U.S. consumer inflation jumped by 8.6% year-over-year in May, its biggest gain since 1981 with gasoline marking a record high and the cost of food soaring.

US inflation data has revived fears that Powell could flag a faster pace of future rate hikes. 

ECB President Christine Lagarde is to make what will be a closely watched speech Wednesday after saying last week that the ECB would next month deliver its first rate hike since 2011, followed by a potentially larger move in September.

In the upcoming week, watch out for on the Fed Monetary Policy Meeting this week. The Federal Reserve is widely expected to announce 0.5% rate hike, adding to the 75 bps of rate hikes already delivered since March.

The FOMC meeting will give markets new guidance about monetary policy outlook. Investors are concerned that an aggressive push higher on rates by the Fed could tip the economy into recession.

The US economic calendar also features a report on producer price inflation, initial jobless claims, retail sales and housing starts.

13 Jun 22 (Mon)

06:17 am