Outlook (BST)

TimeCurrencyEventEffect on FX and equity markets
8:30amCHFSNB Monetary Policy AssessmentLikely to cause the Swiss franc to appreciate against other currencies, and could weigh on Swiss equities.
9:00amUSDFOMC Member Waller SpeaksCould have a modest impact on the US dollar, depending on the content of the speech.
12:00pmGBPMPC Official Bank Rate VotesNo change in the official bank rate is expected to have a limited impact on the British pound.
1:30pmUSDUnemployment ClaimsA slight increase in unemployment claims could weigh on the US dollar.
3:00pmUSDFed Chair Powell TestifiesPowell’s testimony could have a significant impact on the US dollar, depending on his comments about the future of monetary policy.

Outlook

  • 10:02am BST – GBP – CPI y/y
    • Impact: If the actual figure comes in higher than expected, it could put pressure on the GBP and weigh on UK equities. However, if the figure comes in lower than expected, it could boost the GBP and support UK equities.
  • 4:30pm BST – CAD – Core Retail Sales m/m
    • Impact: If the actual figure comes in lower than expected, it could weigh on the CAD and Canadian equities. However, if the figure comes in higher than expected, it could boost the CAD and support Canadian equities.
  • 4:30pm BST – CAD – Retail Sales m/m
    • Impact: Similar to the Core Retail Sales m/m, a lower-than-expected figure could weigh on the CAD and Canadian equities, while a higher-than-expected figure could boost the CAD and support Canadian equities.
  • 6:00pm BST – USD – Fed Chair Powell Testifies
    • Impact: If Powell sounds hawkish in his testimony, it could boost the USD and weigh on risk assets such as equities. However, if Powell sounds dovish, it could weaken the USD and support risk assets.

Outlook

DateTimeCurrencyHeadlineActualExpectedPreviousImpact on forex/equity markets
Tue, Jun 202:30amAUDMonetary Policy Meeting MinutesN/A
Wed, Jun 217:00amGBPCPI y/y8.7%8.1%GBP could weaken if inflation is higher than expected
Wed, Jun 211:30pmCADCore Retail Sales m/m-0.3%0.1%CAD could strengthen if retail sales are stronger than expected
Wed, Jun 211:30pmCADRetail Sales m/m-1.4%0.4%CAD could weaken if retail sales are weaker than expected
Thu, Jun 228:30amCHFSNB Monetary Policy AssessmentN/A
Thu, Jun 228:30amCHFSNB Policy Rate1.50%1.50%CHF could strengthen if the SNB raises interest rates more than expected
Thu, Jun 229:00amUSDFOMC Member Waller SpeaksN/A
Thu, Jun 22TentativeCHFSNB Press ConferenceN/A
Thu, Jun 2212:00pmGBPMPC Official Bank Rate Votes7-0-27-0-2GBP could strengthen if the BoE raises interest rates more than expected
Thu, Jun 2212:00pmGBPMonetary Policy SummaryN/A
Thu, Jun 2212:00pmGBPOfficial Bank Rate4.50%4.50%GBP could strengthen if the BoE raises interest rates more than expected
Thu, Jun 221:30pmUSDUnemployment Claims262K260KUSD could strengthen if unemployment claims are lower than expected
Thu, Jun 223:00pmUSDFed Chair Powell TestifiesN/A
Thu, Jun 223:00pmUSDExisting Home Sales4.28M4.22MUSD could strengthen if existing home sales are higher than expected

Week Ahead

  • United States: The Federal Reserve is expected to continue its rate hike cycle, with Chair Powell testifying before Congress on Wednesday and Thursday. The housing market is also under close scrutiny, with data on building permits, mortgage applications, and existing home sales due out this week.
  • Eurozone: The European Central Bank is also expected to raise rates, but the pace of tightening is likely to be more gradual than in the US. The ECB is also facing a number of other challenges, including the war in Ukraine and the risk of a recession.
  • United Kingdom: The Bank of England is expected to raise rates for a fifth consecutive meeting. Inflation in the UK is at a 40-year high, and the BoE is under pressure to act to bring it under control.
  • Other countries: Other central banks around the world are also expected to raise rates in an effort to combat inflation. The Reserve Bank of Australia, the Swiss National Bank, and the Bank of Canada are all expected to hike rates this week.

In addition to central bank policy, there are a number of other factors that could impact the markets this week. These include:

  • US economic data: The release of key economic data, such as retail sales and industrial production, could provide insights into the health of the US economy.
  • Geopolitical developments: The war in Ukraine and the ongoing tensions between the US and China could continue to weigh on investor sentiment.
  • Corporate earnings: A number of major companies are scheduled to report earnings this week, which could provide investors with an update on corporate profits and outlooks.

Overall, the markets are likely to be volatile this week as investors assess the latest economic data and central bank policy decisions.