Most Important 3 Things To Watch In Market This Week
1. U.S. Inflation Data:
– The Federal Reserve’s preferred measure of inflation will be closely monitored.
– The Personal Consumption Expenditures (PCE) price index, scheduled for release on Friday, will be watched for clues about the direction of interest rates for the rest of the year.
2. Eurozone Inflation Data on Friday:
– The European Central Bank has promised to cut interest rates from a record high of 4% at its upcoming meeting in June, especially if the inflation data released on Friday shows a decline in price.
– Economists expect inflation in the Eurozone to rise by 2.5% year-on-year in May, compared to 2.4% in April, while core inflation is expected to remain steady at 2.7%.
3. Japan Data:
– The inflation data set to be released in Tokyo on Friday will be closely watched as markets try to gauge when the Bank of Japan might next raise interest rates.
– This data comes two weeks before the next monetary policy meeting of the Bank of Japan, where some are betting that the central bank could implement a second rate hike following the historic move in March.
– Policymakers are facing increasing pressure to raise interest rates amid the ongoing weakness in the yen, which is hurting consumption by inflating the cost of imported raw materials.
