Investors are expecting an interest rate hike on Wednesday during the conclusion of U.S. Federal Reserve’s 2-day June monetary policy meeting which would mark the central bank’s second interest rate hike of the year after raising interest rates in March.
According to the CME’S Fed Watcher tool, the probability of 25 basis point interest rate hike from .75-1.00 to 1.00-1.25 percent currently stands at 98.1 percent during the Fed’s upcoming June monetary policy decision on Wednesday.
Another interest rate hike is still possible later this year in September or December.
Investors are also still weighing the fallout of the U.K’s election results on Thursday.
Theresa May’s political future is in jeopardy after she failed to capture a Conservative majority in Parliament.
A hung Parliament has raised concerns about how the U.K. will handle their Brexit withdrawal from the EU.
Inflation and Retail Sales
Besides paying close attention to the Fed’s monetary policy meeting decision on Wednesday in the U.S., investors will also be paying close attention to inflation and retail sales data this week.
On Tuesday PPI and Core PPI for May is due.
U.S. retail sales for May will be reported on Wednesday along with another inflation reading from CPI for May.
Economic Calendar- U.S.
Tuesday- PPI, Core PPI (May)
Wednesday- FOMC rate decision (June), Retail Sales (May), CPI (May), Crude Inventories, Business Inventories (April), MBA Mortgage Applications Index
Thursday- Net-Long Term Tic Flows, Industrial Production (May), Capacity Utilization (May), Empire Manufacturing (June), Initial and Continuing Claims, Import/Export Prices (May), Philadelphia Fed (June).
Friday- Michigan Sentiment-Prelim (June), Building Permits (June), Housing Starts (June).
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