The situation in Russia and Ukraine continues, the three giants of the United States, Europe and the United Kingdom speak

The Bank of England faces a difficult balance in dealing with high inflation and slowing economic growth, and the appreciation potential of the pound may be limited on the possibility that the central bank may raise interest rates more quickly. Bank of England officials have said the central bank is willing to increase the pace of rate hikes, but more decisive measures could slow the economy further, You-NaPark-Hege, a foreign exchange analyst at Commerzbank, said in a note. On the other hand, the Bank of England's overly cautious approach could exacerbate inflation problems, so GBP/EUR is expected to struggle to move higher.

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The fall in German inflation in June largely reflects temporary factors that will not change the ECB's consensus that it needs to raise rates quickly. The main driver of the decline in headline inflation was service sector inflation, which fell from 2.9% to 2.1% in Germany as a whole. This reflects two short-term policy measures for three months from June 1: the issuance of 9 euros a month for public transport tickets and a fuel tax cut. These measures should keep inflation low until the end of August.

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Predicting a 50% chance of a U.S. recession, leaning toward "cheap" defensive stocks. Growth stocks' underperformance could stop as much of the pain they face is "essentially over" and tech earnings are likely to come out stronger. Speculative tech stocks won't return, but as real yield gains moderate and growth starts to gain traction, investors will be interested in some Nasdaq blue-chip stocks.

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The ECB Annual Meeting was opened in Sintra, Portugal. Fed Chairman Powell, ECB President Christine Lagarde, and Bank of England Governor Bailey were invited to attend the ECB Annual Monetary Policy Forum and deliver speeches. Powell believes that persistent inflation is a huge threat to the economy, Lagarde said that the period of low inflation is difficult to reproduce, and Bailey admitted that the British economy is at an inflection point and people's income has been hit.

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The market generally expects the annual rate of Tokyo's core CPI to rise to 2.1% in June to be released tomorrow, which may indicate that the national CPI data will rise. This is expected to spur traders who expect the Bank of Japan to succumb to market pressure, putting downward pressure on USD/JPY in the near term. Goldman Sachs economists believe that by the end of 2022, Japan's core CPI may rise to 3%. The inflation gap between corporate commodity prices and the CPI has widened to levels "comparable to those during the oil crisis (1979-1980)." Rising costs across businesses are expected to be reflected in lagging price corrections, pushing up CPI.

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Economic growth is expected to be subdued as inflation rises due to Russia's extraordinary military action against Ukraine, but the euro zone unemployment rate fell to a record low in May as the euro zone economy continued to rebound from the Covid-19 pandemic. The unemployment rate in the 19 euro zone countries fell to 6.6 percent in May from a revised 6.7 percent in April, Eurostat said on Thursday. The 6.6 percent unemployment rate is the lowest since records began in 1998. In absolute terms, the number of unemployed in the 19 euro zone countries fell to 11.004 million from 11.085 million a month earlier.

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Inflation in France rose to its highest level since the introduction of the euro, increasing pressure on French President Emmanuel Macron and the European Central Bank to do more to avoid the impact on businesses and households. A sharp rise in French energy and food costs pushed consumer price growth to 6.5% in June from 5.8% in May. Inflation data in the euro zone's second-largest economy provides further reason for the ECB to raise interest rates next month and will provide support for officials who want to raise rates by more than 25 basis points.