This is a week full of important economic events. The US Federal Reserve will hold a monetary policy meeting. The Fed is expected to leave interest rates unchanged at the end of its two-day meeting on Wednesday, with market watchers focusing on how many rate cuts will be made before the end of 2024. Inflation data for May is due to be released a few hours before Wednesday's Fed statement. Further signs of weakening inflation could reinforce expectations of a rate cut, especially given signs of economic weakness. The Bank of Japan will hold a monetary policy meeting on Friday. At the same time, policymakers may cut back on their still massive bond purchases. This may provide some support to the yen. Market participants will also closely monitor the latest UK jobs report, trying to see if wage pressures are easing fast enough for a Bank of England rate cut to be an immediate prospect.
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