For global financial markets, the next week may be a crucial one. The European Central Bank, the Federal Reserve, and the Chinese economy will be the focus.

According to the latest retail sentiment analysis, the outlook for the USD/JPY remains mixed, while the GBP/USD may decline.

DXY may rise at the beginning of the third quarter, especially during the French elections. However, if the Federal Reserve's initial interest rate cut expectation gradually becomes clear this quarter, DXY may fall later.

US inflation data and testimony from Federal Reserve Chairman Powell this week may strengthen investors' bets on the Fed's September rate cut.

On Friday (July 5th), Asian stock markets hit a new high as investors expected the US to cut interest rates in September, while the euro reached a three week high on the eve of the French elections.

Although elections in Europe are highly anticipated, the Bank of Japan and the Reserve Bank of Australia will also be the focus as investors consider a possible interest rate hike in the third quarter of 2024.

Currently, traders still hold a bearish attitude towards the Japanese yen against a range of other currencies.

According to the summary, a member of the central bank's board of directors stated that if the basic inflation rate rises, the central bank will raise policy interest rates and adjust the degree of monetary easing.

The US personal income and expenditure report released on Friday will be key data. The downward trend in personal income and expenditure, as well as weak data on the core PCE price index, may further drive expectations of the Federal Reserve's interest rate cut in September.

The Japanese yen exchange rate has fallen for the seventh consecutive trading day, setting a record for the longest consecutive decline since March. On June 21st, the USD/JPY exchange rate once again approached the critical level of 160.

For the market, this week is another important week, as UK inflation data may trigger bets on the Bank of England's interest rate cut, while US statistics may affect expectations for the Federal Reserve's interest rate cut.

In the coming week, US PMI data and US employment reports may determine investors' bets on the Fed's September rate cut.

In May, Tokyo's core CPI (excluding fresh food) increased by 1.9% year-on-year, in line with market forecasts and higher than the 1.6% increase in April.

On Monday morning, the Bank of Japan reduced the number of purchases of Japanese government bonds in its regular purchasing operations, sending a hawkish signal to the market.

The US CPI report released this week is crucial for global financial markets. In addition, statistical data from the Bank of England, the European Central Bank, and the Federal Reserve of Australia will also be the focus.

The minutes of the Bank of Japan meeting (25-26) released on Thursday showed that some members believe that due to sustained inflation or even exceeding the Bank of Japan's 2% target, the rate of interest rate hikes may be faster than current expectations.