Financial Markets Perspectives for June 2022


Another month has passed, and financial market participants are preparing for the summer. It is typical for the summer months to be characterized by a lull price action, but it may be different this time around.

Here are some of the things to consider for the upcoming month:

· May Non-Farm Employment data

· ECB Meeting

· JPY pairs bullish run

· Oil holding above $100/barrel

· Inflation

May NFP Data

Later this week, the NFP data for May will be published. Again, the market expects solid job gains for the month, and the key here is what will the unemployment rate show.

Also, whenever the NFP is due, one should focus on revisions of past data. One thing is sure – the Fed sees the job creation mandate as filled, and the focus now is on bringing inflation down.

ECB Meeting

Next week, the ECB Meeting is critical to euro traders. The central bank hinted in the past that it would end negative rates by September.

Yet, the market expects the ECB to remain on hold at the upcoming meeting. However, this week’s inflation data showed that the prices of goods and services have risen to their highest level ever in Europe, so the ECB may start raising rates this month.

Or, in any case, if it doesn’t, then it may signal a 50bp rate hike in July. In both cases, the euro should bounce on the news, as it currently finds buyers at the 1.07 area.

JPY Pairs Bullish Run Continues

The main theme in the financial markets this year was the bullish run in the JPY pairs. After pausing for a while, they are back at the highs, with the USD/JPY and EUR/JPY flirting with 130, respectively 140 again.

As shown below, the USD/JPY is back at the highs, and the 130 level should act as a pivotal one. A daily close above leads to a possible contracting triangle, a consolidation over the summer, before another leg higher.

Oil Holds Above $100/barrel

The price of oil continues to be influenced by the Russia-Ukraine war. Europe plans to cut its dependency on Russian energy in the aftermath of Russia invading Ukraine, and so it imposed a number of sanctions.

Oil sits comfortably above $100/barrel, trading close to $120/barrel, fueling inflation and creating a challenging environment for central banks.


Inflation is on every central bank’s mandate. Price stability is the goal, and when inflation is well above the definition of price stability, central banks have a credibility problem.

Take Europe, for instance. Yesterday, inflation in Europe surprised to the upside, coming out at 8.1% YoY. Yet, the ECB has the rates in negative territory, in, perhaps, the biggest disconnect in financial markets ever seen.

But inflation is expected to peak later this year in Europe. If that is the case, the sooner we see proof, the better.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Financial Market News

Is the UK really in a recession? Perhaps 2024 data will be different Weekly Market Wrap With Gary Thomson: US INFLATION, GBP/USD, GOLD, BITCOIN EURGBP continues to be suppressed during February. Will it rise again? Weekly Market Wrap With Gary Thomson: S&P 500, CAD, GBP/USD, AMZN GBPUSD Displays Volatility as Pound Demonstrates Low Performance

Latest articles


Nvidia's Successes Helps S&P 500 Price Reach Its All-time High

Yesterday, the price of the S&P 500 stock index rose to record closing highs on Thursday. Moreover, such a growth rate (+2.11% per day) has not been observed for 13 months. Reasons for Extremely Bullish Sentiment: → Nvidia's

Forex Analysis

Market Analysis: AUD/USD and NZD/USD Grind Higher Steadily

AUD/USD is moving higher and might rally if it clears 0.6600. NZD/USD is also rising and could extend its increase above the 0.6220 resistance zone. Important Takeaways for AUD/USD and NZD/USD Analysis Today· The

Forex Analysis

Commodity Currencies Strengthen after the FOMC Minutes Publication

The fundamental data of recent trading sessions contributed to a slight strengthening of commodity and European currencies. Thus, the AUD/USD pair, after forming a bullish engulfing combination, managed to confidently gain a foothold above 0.6500. The pound/US

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.