TC Economic Insight®

Japan’s monthly inflation report will be released on Friday (May 24). If Japan’s inflation cools faster than in the U.S., the USD/JPY should have pressure to surpass the level of 160 once again.

The Dow Jones Industrial Average to post an eight-session winning streak after Federal Reserve Chairman Jerome Powell pointed out clearly that the central bank is not likely to hike rates in its next move, and the U.S. official jobs report showed an easing labor market. The next market-moving economic event should be the U.S. reporting inflation data on Wednesday (May 15).

U.S. inflation rates remain firm (“sticky”) as the labor market stays tight, leading investors not to expect the Federal Reserve to cut interest rates very soon. According to Trading Central's "Economic Insight", the central bank will announce on Wednesday (May 1) its decision on keeping key interest rates unchanged.