Most Important Things to Monitor This Week

Analysts, as well as inventors, are waiting for the meeting of the Federal Reserve. There are other important things to monitor this week, such as the U.S. economic data, retail sales in China.

The Federal Reserve meeting is the major event for markets this week. The country’s central bank is not expected to take any action. Nonetheless, investors will be on the lookout for signs that policymakers think inflation is becoming more permanent.

Investors will be zeroing in on the central bank’s statement after its two-day policy meeting on Wednesday against a background of persistent concerns over whether inflation spikes could force the Fed to start tapering its stimulus sooner than expected.

In the past, the Fed said that near-term price spikes would not translate into lasting inflation. Fed Chairman Powell is likely to stick to this position.

While the inflation numbers are rising the recovery in the jobs market remains sluggish. The country’s economy added 559,000 jobs in May. Most experts are not expecting the Fed to begin discussing scaling back its asset purchase program before its annual conference.

Away from the Fed meeting, inventors are waiting for the data on retail sales as well as producer price inflation. The economic calendar also features reports regarding housing starts.

Retail sales in China and other important information

China is set to publish the data about industrial production in May as well as retail sales on Wednesday. Investors are waiting for both of them, as they would like to learn more about the world’s second-largest economy. The country’s economy expanded by 18.3% in the first quarter.

This week, another main economy, the U.K. will release data on inflation, unemployment, as well as retail sales. The situation regarding the coronavirus pandemic is quite complex. On Saturday, Prime Minister Boris Johnson expressed serious concern about rising infections of the Delta Covid-19 variant.