The upcoming trading week is expected to be the most volatile of the month. Market players are bracing for key interest rate decisions from the central banks of Japan, Australia, the United States, Switzerland, and the UK. The focal point of the week will be Wednesday's Federal Reserve meeting and the subsequent FOMC press conference. Market activity is set to peak on Wednesday and Thursday, as rate announcements and inflation reports could trigger substantial movements across all major currency pairs.
United States
1:15 p.m. GMT: Industrial Production (Month-over-Month) (May). (Forecast: 0.3%; Previous figure: 0.7%)
Japan
3:00 a.m. GMT: Bank of Japan Interest Rate Decision. (Forecast: 1.00%; Previous figure: 0.75%)
Australia
04:30 a.m. GMT: RBA Interest Rate Decision (June). (Forecast: 4.35%; Previous figure: 4.35%)
Eurozone
9:00 a.m. GMT: ZEW Economic Sentiment Index (June). (Forecast: -7.6; Previous figure: -9.1)
United Kingdom
6:00 a.m. GMT: Consumer Price Index (CPI) (Year-over-Year) (May). (Forecast: 3.0%; Previous figure: 2.8%)
Eurozone
9:00 a.m. GMT: Consumer Price Index (CPI) (Year-over-Year) (May). (Forecast: 3.2%; Previous figure: 3.2%)
10:50 GMT: ECB President Christine Lagarde Speech.
United States (Week’s Highlight Events)
2:30 p.m. GMT: EIA Crude Oil Inventories. (Previous figure: -7.227M)
6:00 p.m. GMT: Fed Interest Rate Decision. (Forecast: 3.75%; Previous figure: 3.75%)
6:30 p.m. GMT: FOMC Press Conference.
Switzerland
7:30 a.m. GMT: SNB Interest Rate Decision (Q2). (Forecast: 0.00%; Previous figure: 0.00%)
United Kingdom
11:00 GMT: Bank of England Interest Rate Decision (June). (Forecast: 3.75%; Previous figure: 3.75%)
United States
12:30 p.m. GMT: Philadelphia Fed Manufacturing Index (June). (Forecast: 11.4; Previous figure: -0.4)
12:30 p.m. GMT: Initial Jobless Claims. (Forecast: 225K; Previous figure: 229K)
United Kingdom
6:00 a.m. GMT: Core Retail Sales (Year-over-Year) (May). (Forecast: 1.1%)
6:00 a.m. GMT: Retail Sales (Month-over-Month) (May). (Forecast: 0.5%; Previous figure: -1.3%)
Don’t play the guessing game with rate decisions adopted by five central banks.
Attempting to forecast the policy decisions of five central banks in a single week is nothing but financial suicide. Keep in mind that the market reacts to the rhetoric of central bank governors during their press conferences rather than the raw figures themselves. If you are trading pairs involving the JPY, GBP, CHF, AUD, or USD, close your positions 30 minutes before the announcements. When fundamental data clusters like this, market liquidity drops sharply, exposing you to the risk of being stopped out at unfavorable prices due to massive spread widening.
Automate your risk management before it’s too late.
During a week when the Federal Reserve decides the dollar's trajectory, your emotions will run high. A series of sharp price impulses on the chart will almost certainly trigger FOMC-driven adrenaline, tempting you to ‘revenge trade.’ Do not rely on your own discipline amid market chaos because the human psyche tends to ignore logic when caught in a tilt. Alex Gerchik always points out how essential automated account protection is. Use the automated Risk Manager software. This handy tool disables trading on your trading platform the moment you reach your daily loss threshold. Effective risk management is not optional. Without it, the market can drain your account balance in a matter of seconds.
Factor in the thin summer market.
As June begins, many major institutional players scale back their involvement in the market, resulting in thinner liquidity conditions. In a thin market environment, any news headline can cause erratic price spikes and false breakouts. Do not clutter your charts with lagging indicators. Focus strictly on clean charts and confirmed daily levels. Only this approach allows you to accurately identify whether a major player is protecting their position or whether the market is simply shaking out weaker traders.
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