Welcome to our regular Monday recap and outlook. Last week was a surprising one, both from central banks and in global events. So let's take a look together at what happened and what the current trading week will bring.
On Wednesday, the market was awaiting data on the current inflation rate in the United Kingdom. Consumer Price Index (CPI) growth held steady in May, but above market expectations, which were looking for a slight decline.
On Wednesday and Thursday, Fed President Jerome Powell testified before the Joint Economic Committee in Washington. The testimony consists of two parts: the first part is a prepared statement, after which the Committee will conduct a question and answer session. During the question-and-answer portion of the testimony, there may be strong market volatility.
At Thursday's meeting, the Swiss National Bank raised the key interest rate by 25 basis points.
The Czech National Bank left the interest rate unchanged, as expected.
In the weekly telegram group we sent our technical outlook on the USD/CZK currency pair, where we saw a potential zone to buy (long).
What's in store for us in the current week?
The current trading week will be a bit weaker. We will focus our attention on the following events:
Tuesday 27th - Canadian inflation rate (14:30)