Despite the Fed’s fluctuating bets on rate cuts, the US Nonfarm Payrolls for May showed strong prints, which enabled the Greenback to close the week with a slight gain. This was ahead of the FOMC meeting and the release of important US inflation data.

The robust NFP numbers, the spike in US yields throughout the curve, and the additional repricing of rate cuts in Q4 helped the US Dollar recover from earlier two-month lows in the 104.00 neighborhood. The US Inflation Rate will be released on June 12 the next week, coinciding with the FOMC meeting and Chair J. Powell’s customary news conference. Producer Prices and weekly Initial Jobless Claims are due on June 13. Only on June 14 is the advanced Michigan Consumer Sentiment gauge due.

The EUR/USD pair finished the week lower after moving into the region beyond 1.0900, maintaining the consolidative tendency that has been in place since mid-May. On June 12, the Sentix Index is expected. Afterward, on June 12, Germany’s final inflation rate is predicted on June 13, and industrial production across all of Europe is predicted. On June 14, the EMU’s Balance of Trade will close the weekly docket.

With another attempt to break above the 1.2800 barrier failing to materialize, the GBP/USD pair saw slight losses on the weekly chart. On June 11, the UK labor market report will be released. The GDP, Balance of Trade, Construction Output, and Industrial and Manufacturing Production data are scheduled to be released on June 12.

 

Despite the strong post-NFP U-turn, USD/JPY reversed two weeks of gains and finished the week with a slight pullback close to the 157.00 zone. June 10 is the deadline for the Eco Watchers Survey, bank lending data, and the final Q1 GDP Growth Annualised. Japan’s Producer Prices are released on June 12 and are followed on June 13 by the regular weekly Foreign Bond Investment data and the BSI Large Manufacturing indicator. The final Industrial Production figures and the Tertiary Industry Index will be the BoJ’s two proxies when it sets its interest rates on June 14.

In reaction to the shift in sentiment surrounding the Greenback on Friday, AUD/USD fell to multi-session lows, resulting in the Aussie dollar suffering only minor monthly losses. On June 13, the release of the Australian labor market data took the stage, followed by Westpac’s Consumer Confidence Index. The release of the Consumer Inflation Expectations is scheduled for June 14.

Awaiting Economic Views: Perspectives from the Horizon

• ECB’s Nagel will speak on June 10
• BoC’s Macklem and ECB’s Nagel.
• Fed’s J. Williams and BoC’s Kozicky talk on June 13
• Fed’s A. Goolsbee and ECB’s Lagarde are due to speak on June 14

Central Banks: Next Gatherings to Determine Monetary Policy

• On June 12, the Fed is anticipated to maintain current rates.
• On June 12, the BoT will make a rate decision.
• On June 14, the BoJ convenes.