It seems unlikely, though, that the highly anticipated data dump at the end of the week – from euro zone inflation to the U.S. PCE report – will significantly alter the outlook for global monetary policy, especially since inflation across major economies continues to blow hot and cold.
With consumer prices in Germany rising more than forecast, that puts even more focus on the wider bloc’s reading on Friday, which will come ahead of the European Central Bank’s (ECB) expected rate cut next week.
And though a June cut is pretty much a done deal, the lack of clarity from ECB policymakers over how far and fast rates will be lowered thereafter is keeping markets nervous.
Still, ahead of Friday’s top-tier releases, investors will first have to navigate through Thursday, and market waters are getting increasingly choppy.
|
