The USD is stable amid US-Iran tensions while the market anticipates rate actions from the ECB and BoJ. Key US labor and manufacturing data this week will test inflation expectations under the leadership of a new Fed Chair.
Key Takeaways
- 1.The US Dollar remains stable as geopolitical tensions between the US and Iran persist without a ceasefire breakthrough.
- 2.The ECB and BoJ are the most likely central banks to act this month, with an ECB hike on June 11th almost fully priced.
- 3.A series of critical US economic data releases (NFP, ISM) this week will determine the Fed's willingness to look through energy price shocks.
Table of Contents
- USD: No deal reached ahead of busy month of central bank meetings
- EURO CYCLICAL STOCK OUTPERFORMANCE HELPS SUPPORT EUR
- USD: Data heavy week to provide colour on inflation risks
- KEY RELEASES AND EVENTS
- CERTIFICATION
- LEGAL ENTITIES AND BRANCHES
- GENERAL DISCLAIMERS
- COUNTRY AND REGION SPECIFIC DISCLAIMERS
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Authors
Derek Halpenny
Securities
EURUSDBrent Crude OilSTOXX Europe 600 Optimised CyclicalsJPY
Themes
Central Bank Policy DivergenceGeopolitical StalemateCentral Bank Leadership Transition
Regions
North AmericaEuropeAsia PacificUnited StatesJapanGermany