Forex Market Report - 19th June 2024

1. Federal Reserve Policy Meeting

• The Federal Reserve is set to announce its interest rate decision today, with markets anticipating a potential rate hike.
• Key focus will be on the Fed's statement and press conference for insights into future monetary policy direction.
• Traders should watch for volatility in USD pairs and US equity markets following the announcement.

2. Eurozone Inflation Data

• Latest CPI data for the Eurozone will be released, providing crucial insights into inflationary pressures.
• Expectations are for a slight decrease in inflation, which could influence ECB's policy stance.
• EUR/USD and EUR/GBP pairs might experience significant movements based on the inflation figures.

3. UK Employment Figures

• The UK is publishing its latest employment data, including the unemployment rate and average earnings.
• A lower unemployment rate and higher earnings growth could bolster the GBP, signaling economic resilience.
• Market participants should monitor GBP/USD and GBP/JPY for potential reactions.

4. China Economic Indicators

• China will release industrial production and retail sales data, key indicators of economic health.
• Recent lockdowns and trade tensions may reflect negatively in these figures, affecting market sentiment.
• AUD/USD and NZD/USD could be impacted due to their close economic ties with China.

5. Crude Oil Inventories Report

• The EIA will publish its weekly crude oil inventories report, with current forecasts predicting a drawdown.
• A larger than expected drawdown could push oil prices higher, influencing commodity currencies like CAD and NOK.
• Traders should keep an eye on USD/CAD and crude oil futures for potential trading opportunities.