Markets Shift Focus From Iran Strike to Fed Policy Outlook

Can the US Dollar Make a Comeback as Powell Heads to Congress to Explain Why Rates Aren’t Coming Down Yet?

Here’s what’s lined up on the calendar:

June 23: Eurozone manufacturing PMI (4:00pm), US manufacturing & services PMI (9:45pm), US existing home sales (10:00pm)

June 24: Canada CPI (8:30pm), Fed Chair Powell testifies (10:00pm)

June 25: Australia CPI (9:30am), Powell testifies again (10:00pm), US new home sales (10:00pm), US crude oil inventory (10:30pm)

June 26: BoE governor speaks (7:00pm), US jobless claims (8:30pm), US GDP (8:30pm)

June 27: US PCE price index (8:30pm)

The biggest story over the weekend was the US strike on Iran.

Thankfully, things haven’t escalated further—so the market’s attention might shift back to Powell’s two-day testimony in Congress on Tuesday and Wednesday.

Besides going over the Fed’s semi-annual monetary policy report,

he’ll probably have to explain why the Fed still hasn’t cut rates.

If Powell hints that inflation could stay around 3% by year-end,

that could push back the timeline for rate cuts even more—

which in turn might help keep the US dollar supported.

On the flip side, the US housing market is cooling,

so if upcoming data turns out worse than expected,

it could definitely spook the stock market a bit too.

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