Spotlight: Fed Chair Testimony, US Inflation, China CPI

Spotlight: Fed Chair Testimony, US Inflation, China CPI

Markets reacted strongly last week to the release of US non-farm payrolls data, which showed new signs of slowing, now the focus shifts to the next inflation report, key highlight. for next week. This week the main focus will be on the Fed Chair Testimony, US inflation data and China CPI data hitting the markets.

The key data and events for this weekSpotlight on Fed Chair Testimony, US Inflation and China CPI!

Tuesday – Fed Testimony

  • Federal Reserve Chairman Jerome Powell’s testimony will draw attention Tuesday and Wednesday ahead of US inflation data before the Senate and the House of Representatives. While the hearings will focus primarily on monetary policy, TD Cowen analysts said they also expect questions on various regulatory issues.

Wednesday – China CPI

  • China is expected to release June inflation data on Wednesday in the spring, and a slight increase in the headline is expected. This will be prior to the US inflation data.
  • The consumer price index is expected to be 0.4% from 0.3% previously, while the annual decline in the consumer price index is 0.8% from 1.4% previously. It can weigh against the Chinese yuan.

Thursday – US Inflation number

  • UK GDP data will be released later in the day. The number is forecast to be 0.2%, a modest increase from 0.0% previously. It can weigh a kilogram.
  • The US inflation report for June will be released on Thursday. The core CPI m/m forecast is 0.2% compared to the previous one. CPI m/m is expected to increase by 0.1% compared to 0.0% previously. The consumer price index is expected to decrease moderately to 3.1% from 3.3% previously.
  • Bank of America is in line with the Street on both headlines and key metrics; However, an annual change of 3.2% is expected. Businessmen see a return to stability after major political upheaval under less than 14 years of Conservative government and speculate that Labor leader Keir Starmer could restore trade links with Europe. But it remains to be seen how big a majority Starmer can have in parliament.
  • US Unemployment is said to be the next release of the day. The data is expected to jump by 236,000 to 238,000 after strong growth. This could have a destabilizing effect on the value of the dollar.

Friday – US PPI Data

  • US PPI numbers will be focusing their attention on Friday as they look for fresh indications on when the Federal Reserve might start to cut interest rates.
  • The data is foreseen at 0.1% increase in Core PPI m/m number compared to the previous month 0.0%. PPI m/m is expected to increase by 0.1% compared to a contraction of 0.2%, highlighted the resilience of the data. That could weight on the dollar
  • The next release will be Prelim UoM Consumer Sentiment data. Forecast is at 67.0 from previous 68.2. which could have a mixed impact on the dollar.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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