Market focus in the New York session yesterday was directed to Federal Reserve (Fed) Chairman Jerome Powell and European Central Bank (ECB) President Christine Lagarde at the ECB forum event which discussed the central bank's monetary policy projections.
Commenting on the United States (US) economy, Powell still sees the labor sector as remaining strong. If the labor market contracts sharply, the Fed will act.
Meanwhile, the US disinflation situation shows signs of continuing and he believes the inflation rate is heading towards the central bank's target.
Markets interpreted his speech as a dovish signal for the central bank's preparations to switch to policy easing.
But according to Powell, the Fed needs to be more confident before acting to lower interest rates by having to examine the latest economic data available.
It seems, not much has changed from the content of Powell's speech at the last FOMC meeting.
In the early hours of Thursday morning, investors will examine further details in the minutes of the FOMC meeting that will be published.
Next, the focus will be on the US NPF employment data report at the end of this week which is an important indicator for the Fed in influencing their monetary policy decisions.
Before that, ADP jobs data measuring the private sector in the US will be the first to watch tonight after the market judged the JOLTS data published yesterday with an excellent reading, jumping in May from the previous month and beating forecasts.
In addition to the ADP data, the New York session market will also be graced by the US unemployment benefit claims data as well as the US service PMI data from the ISM survey.
All of them will continue to be an assessment for the Fed and will also give investors an idea of the trading pattern of the market in the near term.
