Fed, BOJ, G7, and Elections: What to Expect in the Week Ahead

The upcoming week is packed with significant events, including central bank meetings, a G7 gathering, and crucial economic data releases. Here are some key developments to watch out for:

1. Federal Reserve Rate Decision and Bank of Japan Meeting: The Fed is widely expected to maintain its benchmark interest rate unchanged during its two-day meeting ending on June 12. However, the focus will be on Fed Chair Jerome Powell's subsequent press conference, where he may provide insights into the central bank's future monetary policy adjustments. Meanwhile, the Bank of Japan (BOJ) will also conclude its meeting on June 14, with markets speculating about a possible tweak in its quantitative easing (QE) program.
2. G7 Summit: The Group of Seven (G7) leaders will gather for a meeting in Bari, Italy, on June 13-15, where they are expected to discuss several pressing global issues, including Ukraine's financial support and addressing China's growing economic influence. The summit will also be an opportunity for EU leaders to discuss the aftermath of the recent European Parliament elections and the surprise snap election called by French President Emmanuel Macron.
3. US and UK Economic Data: Important economic data releases include US inflation figures for May, expected to show further cooling from the peak levels seen earlier this year. The UK will also release employment data, providing insights into the health of the labour market and wage growth. Additionally, UK monthly GDP data for April and wage growth figures will offer further understanding of the country's economic performance.
4. Labour Party Manifesto Launch: Ahead of the UK's election on July 4, the Labour Party is set to unveil its policy agenda, which could potentially challenge the ruling Conservative Party's stronghold. Recent polls indicate that Labour is favored to win the upcoming election.
5. EU Elections and Their Aftermath: The results of the European Parliament elections are being analyzed by EU leaders as populist and far-right parties gained ground in several countries. The elections have also shifted the political landscape in Europe and raised questions about the future of the EU and its leadership.
6. French Election and Its Impact: The decision by Macron to call a snap election has triggered a political crisis in France. The campaign is expected to kick off in the coming weeks, with Macron's main challenger coming from the far-right Rassemblement National party led by Marine Le Pen. The election could shape France's role in Europe and its commitment to EU integration.

Overall, the upcoming week is filled with events that could potentially impact markets and shape the global economic and political landscape. Monitors will be keen to track these developments and assess their effect on various asset classes and investment strategies.