GLOBAL CENTRAL BANK MEETINGS TAKE CENTER STAGE THIS WEEK WITH FRENCH AND BRITISH POLITICS COMING INTO THE SPOTLIGHT
FEDERAL RESERVE HEADLINES A BUSY WEEK FOR FX MARKETS
The U.S Federal Reserve Bank headline a busy week for financial markets, with FED chair Janet Yellen largely expected to raise the United States rate by 0.25% basis points at Wednesday's meeting.
Politics also dominates the headlines, with the ongoing drama surrounding James Comey's testimony in the U.S, French Legislative election results, and uncertainty plaguing UK politics after the Conservative Party failed to gain a majority victory in the last week's General Election.
Monday 12th June, French Legislative Election Results
First round results of the French Legislative election will be known to financial markets, as New French President Emmanuel Macron attempts to push through his reformist program. A failure in the first round election for Macron is likely to be euro negative.
There are 577 seats up for grabs, including 11 who represent French citizens living overseas. Each constituency represents about 125,000 inhabitants. If no candidate wins over 50 percent in the first round, the two top-placed go into the second round on June 18, including any other candidate who won the votes of more than 12.5 percent of the local electorate.
Tuesday 13th June, United Kingdom Consumer Price Index
UK inflation data is released for the month of May, with the headline figure expected to come inline with the previous month's figure of 2.7%.
Inflation has recently been rising in the United Kingdom, with the British Pound moving higher alongside upwardly revised monthly inflation figures. The Bank of England may soon have to consider raising interest rates to counter above 2% inflation.
Wednesday June 14, United States Interest Decision And FOMC Press Conference
The Federal Reserve Bank are largely expected to raise the current U.S interest rate by 0.25 basis points to 1.25% on Wednesday. The FOMC press conference after the interest rate decision will be closely watched, as the Janet Yellen delivers her current assessment of the U.S economy.
The FED are expected to deliver at least one more interest rate raise by the end of 2017, any mention of the timing of the next rate increase in the FOMC statement will likely impact the value of the U.S dollar.
Thursday June 15, Bank of England Interest Rate Decision
The Bank of England are expected to keep the current UK interest rate unchanged at 0.25% at Thursday's policy meeting.
Comments from the MPC meeting minutes on economic headwinds facing the UK after BREXIT, rising inflationary pressures, and future monetary policy all have the ability to influence the value of the British pound.
Friday 16 June, Bank of Japan Interest Rate Decision Monetary Policy Statement and Press Conference
The Bank of Japan policy board members come to a consensus on where to set the rate the current interest rates on Friday. Expectations are for the BOJ to keep rates at the current record low –0.10%.
The BOJ's policy statement will be closely watched after a recent uptick in Japanese economic activity and inflation.
The statement will also be scrutinized by traders for any mention of changes to the current asset purchase program in place, and any comments from BOJ governor Haruhiko Kuroda concerning the current value of the Japanese Yen.