Markets face another busy week filled with event risks as traders gauge central bank policy and global inflationary pressures.

The ECB will likely take the first steps to pave the path towards rate hikes in the second half of 2022.

The May U.S. inflation report will be key for the S&P 500 next week. For sentiment to improve meaningfully, the data will have to show that inflationary pressures are easing at a rapid pace.

Gold prices remain vulnerable after a solid US non-farm payrolls report underscored the Fed’s confidence in the economic outlook. All eyes are on the next US inflation report.