A Week in the Market: Focus on Inflation (20 – 24 June)
This week will not be the most full one of events, but the capital market needs a pause to bring nerves and portfolios to order.
Great Britain will present releases on the price situation: from the retail prices index to the official inflation and PPI. The CPI is expected to have grown to the phenomenal 9.1%. The Bank of England will not take long to react: a surge in inflation is a negative signal for the GBP.
USD: demand remains high
The US will start publishing the PMI is production and non-production, as well as the statistics of the real estate market. Check the reports of stress tests of American banks due on Thursday. The demand for the USD remains high because investors go on escaping risks.
Australia will publish the PMI in services and production and a leading indices report. Check the minutes of the previous meeting of the Reserve bank of Australia. The AUD might continue the decline due to the global situation.
Japan is consolidating and might return to declining, but there is a detail. The JPY normally does not react to statistics, but this week there will be report that can make it move.
We mean the report on base inflation in Tokyo. The index is interpreted as a leading one to the main inflation info. The growth of the CPI can make the Bank of Japan change its view on the monetary policy and make the yen grow locally.
The Euro zone is getting ready to a CCI release that might show some stability, and is publishing some PMI indices. A speech by the head of the ECB Christine Lagarde is also due. If her comments touch upon he credit and monetary policy and turn out decisive, the EUR can secure.