Last Friday, the May non-farm payrolls surged to 270K while the month-on-month wage growth also pulled up to 0.4%. After the market entered a tense state, it saw another minor correction.

This Wednesday, inflation data and the Federal Reserve's interest rate decision will be released simultaneously. It's worth noting that the Fed has recently emphasized that interest rates are sufficiently restrictive, with the focus being on when to cut rates. Therefore, in the updated FOMC economic projections, the previous forecast of three rate cuts this year might be revised down to one, two, or even none at all.

If the rate cuts are reduced to one or two, it would mean the Fed is relatively dovish. A dovish Fed could have a greater impact than a less optimistic CPI (provided the CPI surge isn't too exaggerated).