Highlights
In its quarterly monetary policy assessment, the Swiss National Bank (SNB) is expected to raise it policy interest rate by 25 basis points to 1.7% percent, slowing the pace of its credit tightening after three successive 50-basis-point hikes, given a loss of economic momentum, lingering worries about the country's banking system, and, crucially, slowing in inflation. The annual inflation rate in Switzerland eased to 2.2 percent in May from 2.6 percent in April.
The Bank of England is expected to continue fighting stubbornly high inflation and accelerating wage growth by raising Bank Rate by another 25 basis points to 4.75 percent in what would be its 13th consecutive rate hike. Data released Wednesday showed that the consumer inflation rate in the UK remained at 8.7 percent in May, above the median forecast of 8.4 percent.
The European Commission's consumer confidence index in June is expected to edge higher to minus 17.0 from minus 17.4 in May. This index has been steadily improving from record lows hit during the third quarter last year.
Among US data, new jobless claims for the June 17 week, at a consensus 261,000, are not expected to come down from 262,000 in the two prior weeks, a level that marked a significant shift higher.
The Chicago Fed national activity index is expected to hold steady in May at 0.08 versus 0.07 in an April report that showed noticeable improvement across components.
The first-quarter current account deficit is forecast to widen to $218.2 billion versus $206.8 billion in the fourth quarter.
After April's 4.28 million annualized rate, existing home sales in May are expected to slip slightly to a 4.25 million rate. The National Association of Realtors described sales as"bouncing back and forth" but remaining"above recent cyclical lows."
Down by 0.6 percent in April, the index of leading economic indicators in May is expected to post a 14th straight decline, down a consensus 0.7 percent. This index has been in sharp decline and has long been signaling a pending recession.
Federal Reserve Board Governor Christopher Waller will deliver opening remarks at the International Journal of Central Banking and Central Bank of Ireland Conference at 4 a.m. EDT (0800 GMT).
Federal Reserve Chairman Jerome Powell will deliver his Semiannual Monetary Policy Report to Congress Before the U.S. Senate Committee on Banking, Housing, and Urban Affairs at 10 a.m. EDT (1400 GMT).
In his testimony to the House Financial Services Committee Wednesday, Powell repeated that inflation remains well above the Fed's longer-run goal of 2 percent. In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, we will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments, he said.
Cleveland Federal Reserve Bank President Loretta Mester will speak during a welcome social before the Policy Summit 2023: Communities Thriving in a Changing Economy conference hosted by the Federal Reserve Bank of Cleveland, also at 10 a.m. EDT (1400 GMT).
Consumer inflation in Japan is expected to ease back to just above 3% in May in both the total and core indexes as utility and gasoline subsidies continued to cap already easing energy costs. The government also lowered its renewal energy promotion surcharge on electricity bills for fiscal 2023, effective in April, which was reflected in bills due in May.
The closely watched core CPI, which excludes fresh food prices, is forecast to post a 3.1 percent rise on the year after rising 3.4 percent in April and 3.1 percent in March while the annual rate in the total CPI is seen slowing to 3.2 percent from 3.5 percent in April to match March's 3.2 percent. By contrast, widespread markups for processed food are expected to push up the increase in the core-core CPI (excluding fresh food and energy) to a fresh 41-year high of 4.2 percent from April's 4.1 percent.
The Bank of England is expected to continue fighting stubbornly high inflation and accelerating wage growth by raising Bank Rate by another 25 basis points to 4.75 percent in what would be its 13th consecutive rate hike. Data released Wednesday showed that the consumer inflation rate in the UK remained at 8.7 percent in May, above the median forecast of 8.4 percent.
The European Commission's consumer confidence index in June is expected to edge higher to minus 17.0 from minus 17.4 in May. This index has been steadily improving from record lows hit during the third quarter last year.
Among US data, new jobless claims for the June 17 week, at a consensus 261,000, are not expected to come down from 262,000 in the two prior weeks, a level that marked a significant shift higher.
The Chicago Fed national activity index is expected to hold steady in May at 0.08 versus 0.07 in an April report that showed noticeable improvement across components.
The first-quarter current account deficit is forecast to widen to $218.2 billion versus $206.8 billion in the fourth quarter.
After April's 4.28 million annualized rate, existing home sales in May are expected to slip slightly to a 4.25 million rate. The National Association of Realtors described sales as"bouncing back and forth" but remaining"above recent cyclical lows."
Down by 0.6 percent in April, the index of leading economic indicators in May is expected to post a 14th straight decline, down a consensus 0.7 percent. This index has been in sharp decline and has long been signaling a pending recession.
Federal Reserve Board Governor Christopher Waller will deliver opening remarks at the International Journal of Central Banking and Central Bank of Ireland Conference at 4 a.m. EDT (0800 GMT).
Federal Reserve Chairman Jerome Powell will deliver his Semiannual Monetary Policy Report to Congress Before the U.S. Senate Committee on Banking, Housing, and Urban Affairs at 10 a.m. EDT (1400 GMT).
In his testimony to the House Financial Services Committee Wednesday, Powell repeated that inflation remains well above the Fed's longer-run goal of 2 percent. In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, we will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments, he said.
Cleveland Federal Reserve Bank President Loretta Mester will speak during a welcome social before the Policy Summit 2023: Communities Thriving in a Changing Economy conference hosted by the Federal Reserve Bank of Cleveland, also at 10 a.m. EDT (1400 GMT).
Consumer inflation in Japan is expected to ease back to just above 3% in May in both the total and core indexes as utility and gasoline subsidies continued to cap already easing energy costs. The government also lowered its renewal energy promotion surcharge on electricity bills for fiscal 2023, effective in April, which was reflected in bills due in May.
The closely watched core CPI, which excludes fresh food prices, is forecast to post a 3.1 percent rise on the year after rising 3.4 percent in April and 3.1 percent in March while the annual rate in the total CPI is seen slowing to 3.2 percent from 3.5 percent in April to match March's 3.2 percent. By contrast, widespread markups for processed food are expected to push up the increase in the core-core CPI (excluding fresh food and energy) to a fresh 41-year high of 4.2 percent from April's 4.1 percent.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
