From a volatility perspective market participants will no doubt welcome the heavy economic docket in the week ahead. The Federal Reserve remains quite split on the way forward with there likely to be intense debates and discussions on whether a pause or another 25bps hike is needed. There have been small signs of late that the economy maybe beginning to slow, however wage growth remained steady at 0.3% with an uptick in unemployment during the month of May. The NFP print however smashed estimates in what the Fed hawks will likely use as ammunition heading into Wednesday’s meeting. A significant beat of estimates by the US CPI data could see the probability of a hike increase and the Dollar bids start ahead of the FOMC meeting which could hinder Gold prices attempted push toward the $2000 mark.
