Focus on FOMC decision and key economic indicators, market expects hold on rates

From MarketPulse: 2024-06-11 22:30:08

This week, focus is on the FOMC interest rate decision and key economic indicators with the ECB and BOC already cutting rates. Market expectations center around the Bank of Japan amidst the Yen’s lows. EUR/USD and USD/JPY analysis show resilience and potential volatility in currency markets.

As the financial world eagerly awaits the FOMC interest rate decision, recent rate cuts by the ECB and BOC in response to declining inflation have set the stage. Markets are closely watching CPI and PPI figures for signals, with expectations of a hold on rates and potential rate cuts starting in September.

With inflation decreasing from its peak, Fed Chair Powell emphasizes the importance of sustained disinflation for future rate decisions. Analyst surveys point to rate holds and traders await possible updates in the dot plot for 2024 projections. The upcoming CPI report and PPI figures add further intrigue to market movements and decisions.

The Bank of Japan is expected to maintain interest rates amidst the Yen’s weakness, with traders cautious of potential quantitative tightening impacts. The USD/JPY uptrend faces resistance despite attractive carry trades. EUR/USD technical analysis shows possible volatility with key levels to watch for trading opportunities and broader economic factors at play.



Read more at MarketPulse: US CPI and FOMC Rate Decision – EUR/USD and USD/JPY Technical Analysis