According to BlockBeats, IG Group analyst Jeremy Naylo stated on June 11 that the Federal Reserve's interest rate decision will be a turning point this week, although it is anticipated that there will be no changes to the rates. Prior to this, the U.S. Department of Statistics will release the Consumer Price Index (CPI) data for May.
This could indicate that the inflation stickiness we have been observing will continue. The U.S. core CPI for May is expected to increase by 3.5% year-on-year, but the real concern lies in the service sector. Over the past two months, the U.S. service sector CPI has been on the rise, with a year-on-year increase of 5.3% in April.
Richard Snow, a foreign exchange analyst at Daily FX, informed traders that it is widely expected that the so-called 'super core' inflation, i.e., service sector inflation minus housing inflation, will at least maintain the year-on-year increase of the past two months at 5.3%. This could mean that the Federal Reserve has almost no room to cut interest rates.