ChainCatcher news, according to Jinshi, IG Group analyst Jeremy Naylo said that the Fed's interest rate decision will be a turning point this week, although we do not expect any changes in interest rates. Before that, the US statistics department will release the May CPI data.
This is likely to indicate that the stickiness of inflation we have seen will continue. The US core CPI is expected to increase by 3.5% year-on-year in May, but the real concern is the service sector. The US service CPI has been rising for the past two months. It increased by 5.3% year-on-year in April.
Richard Snow, currency analyst at Daily FX, told traders that so-called “super core” inflation, or services inflation minus housing inflation, is widely expected to keep year-over-year gains at 5.3% for at least the past two months, which could mean the Federal Reserve has little room to cut rates.