Investors are watching inflation data closely, with a focus on the US CPI release on Thursday. A weaker-than-expected print could lead to expectations of a Fed rate cut in September. The RBNZ meeting on Wednesday is also on the agenda, but no change in rates is anticipated. The week kicks off with the French election results, which could influence the Euro.


Last Week’s Recap:

  • US stock markets hit record highs despite a shortened week.
  • Bond yields and the US dollar fell as economic data hinted at a slowdown.
  • The Fed remains cautious on rate cuts despite cooling economic indicators.
  • Eurozone inflation slowed, potentially leading the ECB to hold rates.
  • Labour Party won the UK election with a focus on healthcare and immigration.


US Economy in Focus:

  • This week’s focus is heavily on the US economy, with key inflation data and Fed Chair Powell’s testimony.
  • A dovish inflation report could lead to expectations of a September rate cut.


Early Week:

  • Monday: French election results could shake up the Euro early on. Otherwise, it’s a data-light day.
  • Tuesday: Fed Chair Powell and Treasury Secretary Yellen testify, potentially impacting US markets.

Mid Week:

  • Wednesday: China releases key inflation data, followed by the Reserve Bank of New Zealand’s interest rate decision. Powell faces a second round of testimony before the House.
  • Thursday: All eyes on US inflation data (CPI). A weak print could signal Fed rate cuts are coming.


Late Week:

  • Friday: US releases producer price index (PPI) data, followed by consumer sentiment and inflation expectations surveys.
Categories: Market News

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