The first week of June will bring several central bank decisions on interest rates and a number of publications of PMIs for May. It seems that apart from political issues and the increase in tension between Washington and Beijing, it is these events from the macroeconomic calendar that may attract investors' attention.
The most important event during the European Central Bank meeting that will end on Thursday 4th June will be the publication of economic forecasts for the eurozone. It seems that the projections may not be very optimistic, as may be indicated by earlier statements made by ECB representatives. It is also possible to increase purchases as part of the PEPP. This is a non-standard monetary policy measure initiated in March 2020 to counteract the serious threats to the monetary policy transmission mechanism and the prospects of the euro area posed by the coronavirus epidemic. The PEPP is a programme for the temporary purchase of private and public sector securities assets with a total envelope of €750 billion, the ECB says. This is the amount that can be increased. The programme has a target duration of at least until the end of 2020, but a later end may be announced.
The Reserve Bank of Australia will also take a decision on interest rates on Tuesday 2 June. The market consensus assumes that the main interest rate will remain at the level of 0.25 percent. The decision will be published at 6:30 a.m. On Wednesday, June 3 at 4:00 p.m. The Bank of Canada's decision on interest rates will be published. It seems that the Bank of Canada will not change monetary policy parameters either.
Meanwhile, from Monday, PMI data for individual economies will be flowing into the market. Investors will see a reflection in them after a huge fall in indices in April. The scale of growth could be able to indicate how quickly economies are trying to recover from the collapse caused by the epidemic.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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