SUMMARY
A relatively quiet week lies ahead in terms of economic data, with key releases including U.S. CPI, U.K. wage growth, and Chinese inflation—each likely to draw market attention. U.K. wage data, due Tuesday, is expected to show a 5.5% year-on-year increase, which may influence the Bank of England’s June rate decision toward holding steady. In the U.S., core CPI is anticipated to rise 0.3% month-on-month in May, up from 0.2% in April, potentially reinforcing expectations that the Federal Reserve will keep interest rates unchanged.
Additionally, the U.K. government’s spending review, scheduled for release on Wednesday, will detail the allocation of £600 billion in public funds.
Meanwhile, the U.S. dollar is retracing some of Friday’s gains ahead of U.S.-China trade talks taking place in London today. In a move aimed at easing tensions, China has approved select applications for the export of rare earth elements.
