Last week markets remained influenced by the momentum of the dollar. With the Greenback losing steam towards the end of the week also equity markets had been able to remain pace again. The SpaceX IPO of now one of the most valuable companies in the world might have supported the positive bias as well.

Musk and his team were able to accumulate about USD 75 billion for the company, marking the biggest IPO in history. Despite the fact that the company has not been able to generate profits, selected investors have focused more on the story of company and the exploration of space.

This week markets will face an array of important data with important Central bank decisions. On Tuesday the Bank of Japan will likely offer insights into the pace of future rate hikes. If the hawkish guidance will follow, also the JPY might continue to strengthen again. On Tuesday, the RBA from Australia will follow. Given the recent rate hikes a neutral towards rather slight hawkish stand is expected. This might then also support the AUD. The Swiss National Bank is likely not offering fresh insights. The Bank will address the imported inflation and likely the Swiss France remains flat thereinafter.

Overall, a packed week for traders in the Forex market, with the most important rate decision examined below.

Important events this week:

– US- interest rate decision- it is expected that Kevin Warsh will remain on hold this meeting not adjusting rates for now. The strong Nonfarm Payrolls report showed that the US economy remains on track while at the same time prices keep being elevated. A reason for the Federal Reserve Bank to rather look into potentially even hiking rates as several other Central banks had recently been doing. 

EURUSD, weekly chart

The EURUSD currency pair continues to trade on top of the important support zone at 1.1500. A break of this level might indicate that prices will fall further. The FX pair continues to trade below the important 50- moving average level, which currently sits at 1.1675. Only a break above that level might start to ignite positive momentum again. The FOMC rate decision will occur on Wednesday, 18^nd June at 20:00 CET.

– UK- BoE rate decision- The Bank of England is not expected to adjust rates at this meeting. The last time rates have been cut from 4.00% to the current 3.75% was in December last year. However, the Bank will remain careful in cutting rates further as consumer prices remain at elevated prices. Recent CPI data shows a decline from 3.3% to 2.8%, which still remains high. On the flipside the labour market keeps shrinking as well making it difficult for the Central Bank to act. On one hand the economy should be stimulated, while on the other prices should be kept at bay as well.

GBPUSD, daily chart

The GBPUSD currency pair has been gradually rising again, and is currently trending towards the 50- moving average zone at 1.3466. A break of the technical resistance zone of 1.3450 might ignite fresh upside momentum. Hints on how the Bank will act in the near future might influence that path. Depending on the votes of the committee members the market might act volatile. Currently it is expected that the majority of MPCs will remain on hold with their votes. Any hawkish change could hence give the Pound a boost. The rate decision will be held on Thursday, 18th June at 13:00 CET.