Race to cut rates? - Who knows what Central Bankers are planning at the moment, but it's always important to be aware of when they give us an insight into their long-term view on monetary policy. That's the theme for this week as we will see the Fed and the BoJ give us their June decision on Interest Rates this upcoming week.
It's not often that we get such a stacked week of high-impact macro data, so one thing to takeaway from the calendar for the upcoming week is to make sure capital preservation and account security is main priority as technical trade ideas can get wiped in an instance with heightened volatility.
The Japanese Yen has been getting steamrolled over the past few months with USDJPY reaching highs not seen since 1990 and with the potential for a BoJ intervention into the currency market to support the Yen during this steep decline as the decline has continued after the BoJ raised rates positive for the first time since 2015 back in March 2024. It's unlikely that we see the BoJ hike rates further as rates haven't been higher than current since 2008, but the BoJ looks to now be getting desperate to support their native currency and economy.
With a heavy week from the US also, including Interest Rate decision, CPI, PPI and Michigan CSI the point of capital preservation needs to be reiterated. These are the weeks we can see market whipsaws and higher than normal spread and slippage as volatility heightens, so please trade safe.
In other news this week we have UK & Australian Employment data, Japan GDP and US CPI & PPI. Be prepared for fireworks.