Investors anticipate that the Fed will not cut interest rates in June due to the strong labor market conditions in the United States, which could lead to increased inflationary pressures. Additionally, rising demand for labor will result in increased competition and higher wages.

Consumer spending directly impacts inflation rates, thus investors continue to prioritize inflation rates. The announcement is expected on Wednesday, with Core CPI, excluding volatile food and energy prices, projected to slightly decrease to 3.7% from 3.8% in February.

Meanwhile, expectations for a rate cut by the Bank of Canada (BoC) have increased due to weak Canadian labor market data, indicating a contraction of 2,200 jobs and an increase in the unemployment rate to 6.1%.