News & Analysis

This week’s price action largely resulted around the dollar and events in US fixed income as the DXY toyed with the 90.0 handle. While policy decisions from the Bank of Canada and the European Central Bank were released, markets tended to focus on inflation barometers in the US ahead of next week’s FOMC meeting. There was a lot of hype for Thursday’s US CPI release, and while the inflation print didn’t disappoint at 5%, the market reaction was underwhelming. The S&P 500 hit a fresh all time high, the US 10-year dropped 10bps to 1.43%, and the dollar broadly weakened. Next week, the economic calendar is brimmed with central bank policy decisions. The Federal Reserve, Central Bank of the Republic of Turkey, and the Central Bank of Brazil are likely to be the most exciting ones out of the agenda. Over the weekend, events in the UK will focus on the government’s decision to stick to its June 21st reopening plan as cases of the delta variant rise.

Read Monex’s Week Ahead here:



Simon Harvey, Senior FX Market Analyst
Olivia Alvarez Mendez, FX Market Analyst
Ima Sammani, FX Market Analyst



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