🔎 Key events of the week: inflation and rate week
We are in for a powerful week, where the main driver for the markets will be US inflation data and the European Central Bank meeting.
Here's a quick guide on what this means and why it's worth watching:
🗓 Monday (06.08)
18:00 — NY Fed Inflation Expectations (USA). This is what inflation Americans expect. If expectations rise, people start spending faster, which in itself fuels real inflation.
🗓 Tuesday (06.09)
15:15 — ADP Employment (USA). A leading indicator of labor market conditions. A too-strong labor market gives the Fed a reason to keep rates high for longer.
15:30 — US Trade Balance. This will show the difference between exports and imports. It affects the dollar's value.
🗓 Wednesday (06.10) — 🛑 Day X
15:30 — CPI (Consumer Inflation in the USA) ❗️❗️ — The main report of the week. If inflation comes in above expectations, markets (stocks and crypto) may drop, as investors fear the Fed won't lower rates. If inflation drops — markets will breathe a sigh of relief.
📊 Earnings: Oracle reports after market close (an important marker for the AI and cloud sector).
🗓 Thursday (06.11) — 🛑 Super Thursday
15:15 — ECB interest rate decision 🇪🇺 — The European regulator is deciding what to do with the Eurozone economy. Any hints of a rate cut or maintaining a tight policy will significantly swing the EUR/USD pair.
15:30 — PPI (Producer Price Index in the USA) ❗️ — A leading indicator. This is inflation 'at the factory gate'. If raw materials and production costs rise today, in a couple of months these expenses will be passed on to regular consumers (CPI will rise).
15:30 — Initial jobless claims. An increase in claims = cooling economy (good for rate cuts, but bad for overall economic health).
📊 Earnings: IT giant Adobe reports.
🗓 Friday (06.12)
17:00 — University of Michigan Inflation Expectations. The final note of the week. Important for understanding long-term (1 and 5 years) consumer sentiment.
🎯 Summary: The whole week revolves around one theme — is the global economy managing inflation? Focus on Wednesday (CPI) and Thursday (ECB + PPI). Be cautious with open positions, volatility may be high! Above expectations = market drop, below expectations = market rise.
On all networks 🤝