This week attention is on several central bank interest rate decisions, Middle East tensions, and the G7 summit.

This week, central bank policy decisions from the United States, United Kingdom, Japan, Australia, Switzerland, Sweden, and Norway, as well as developments in the Middle East and the G7 summit in France, will keep traders on high alert. There is a general expectation that the Federal Reserve will keep interest rates in the range of 3.50%-3.75% at its first meeting on Wednesday, chaired by Jay Powell. As officials take a more hawkish stance on inflation risks, the market will closely watch the policy statement, economic forecasts, and press conference for any signals of the Fed abandoning its accommodative stance. Key economic data includes the New York and Philadelphia Fed manufacturing indices, May industrial production, retail sales, and weekly initial jobless claims. The US market will be closed on Friday for the "June holiday". It is expected that the Bank of Japan will raise interest rates by 25 basis points to 1% on Tuesday, as signaled by Governor Haruhiko Kuroda, who will be absent from the meeting due to illness. Japan's major data includes May trade figures and national consumer price index. The Bank of Japan will release minutes from its April meeting. The Bank of England is expected to keep interest rates unchanged at 3.75% on Thursday, maintaining this level throughout 2026. Votes from the Bank of England and the monetary policy report will be closely watched. The Swedish central bank is expected to keep interest rates at 1.75% on Wednesday, while it is expected that Switzerland and Norway will also keep their rates unchanged at 0% and 4.25% respectively on Thursday.