The US dollar Week ahead is a big one - Westpac

Analysts at Westpac explained that this week’s event calendar will be important for markets: notably the FOMC decision and CPI data. 

Key Quotes:

"There’s also retail sales and the first June surveys (Philly, Empire, NAHB & Michigan sentiment). The Fed is unlikely to deliver a hawkish surprise to the USD market. A hike is 100% priced; an jobs, inflation and wage data have all surprised on the downside lately. Influential Fed insiders such as Brainard mused that persistent low inflation could lead to reassessment of the Fed’s path."

"Indeed, recent weaker data might prompt modest downward revisions to the ‘17 and ‘18 GDP median (2.1%) and the core PCE inflation median (1.9% & 2% respectively), though unemployment is sitting below the Fed’s projections. The dot plot of projected rate hikes is probably “safe” (3 hikes in 2017 & 2018), a shift requiring an implausibly large number of participants to change."