This week, the inflation data of the United States and the interest rate decision of the Central Bank of Mexico will be effective on the global markets. Investors will continue to look for clues to the course of the monetary policy of the United States. In fact, next week attention will be given to the US inflation data. On the other hand, the Central Bank of Mexico will announce the interest rate decision.
After the strong employment figures of the United States released on Friday, eyes will be turned into the inflation data of the US. The two key inflation indicators are to be announced on Thursday and Friday, respectively.
While job hunting in the United States continued in the month we passed, analysts and policy makers have reported that it is possible to remain cautious about interest rate hikes if wage growth is not accelerated. The possible increase in inflationary pressures may once again support a move towards interest rates this year.
Mexican interest rate decision will be also vital in the markets. The Mexican Central Bank is expected to keep interest rates at 7 percent on Thursday’s policy decision. The bank took a break from the aggressive tightening cycle after raising interest rates by 375 basis points over the past 19 months.
We will see if the dollar will continue to protect its value after the announcement of the inflation data of the US. Despite the fact that the interest rate decision of Mexica seems to have no effect on the global markets, in such a changeable period it can have huge effect.