The upcoming week in the financial markets is shaping up to be an eventful one, with potential key developments on the horizon for both the Eurozone and the US. A recent report on EUR/USD trade setup indicates a bullish continuation, contingent on a resistance breakout. However, with both the US and UK markets closed on Monday for holidays, trading volume may be low, leading to sluggish price action.
Looking ahead, Friday is expected to be a crucial day for the markets, with the release of significant economic indicators on both sides of the Atlantic. In the Eurozone, the May CPI figures will play a vital role in shaping the monetary policy trajectory of the European Central Bank. Analysts anticipate a slight increase in inflation, which could impact the ECB’s decision on additional rate cuts in their upcoming June meeting.
Meanwhile, in the US, core PCE deflator data will also be released on Friday. Expectations suggest a small increase in April, but a downward surprise could signal a return to a disinflationary trend, potentially prompting the Federal Reserve to pivot to a looser stance. On the other hand, an inflationary surprise could delay rate cut expectations, leading to a more challenging environment for equities and precious metals.
For traders looking to navigate these dynamic market conditions, in-depth forecasts and analysis from expert sources like DailyFX could prove invaluable. With the potential for heightened volatility and significant market-moving events, being informed and prepared will be key to making smart trading decisions in the coming week.
