Market Insights Podcast – All eyes on FOMC, Fed new “dot plot” projections, BOJ, US and China inflation data

OANDA Senior Market Analyst Kelvin Wong joins Jonny Hart to discuss this week’s key economic data and events. Firstly, the major key risk event this week will be on Wednesday, 12 June where we have a double dose of US CPI data release for May and US FOMC meeting outcome where the focus will be on the forward guidance of US monetary policy from Fed Chair Powell’s press conference and the latest summary of economic projections (“dot plot”) release on forecasted inflationary trends and the implied of Fed funds rate cut or hikes (very unlikely for 2024) for 2024 to 2026.

The wrap up the week, we will have Bank of Japan(BoJ) monetary policy meeting outcome on Friday, 14 June where majority of the market participants expect it to maintain its overnight rate at 0.1% after its first historical hike in March, its first hike in 17 years after 8 years if negative interest rates. The focus will now will be on BoJ’s monthly Japanese Government Bonds (JGBs) purchases, whether there will be a further reduction on its quantum after it ended its unorthodox YCC on the 10-year JGB yield in March.

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