Market News

It was a volatile day for most asset classes, as Treasury yields and bitcoin tumbled while commodities and equities had quite the comeback later on.

The U.K. claimant count change figure indicated a larger than expected jump in unemployment for May while the average earnings index came in better than consensus.

With the U.S. CPI report due just hours before the FOMC announcement this week, the inflation report could be a good opportunity to catch big USD moves.

Markets seemed to be off to a slow start this week, but could this just be the calm before the storm? Here’s how the major currencies are faring.

The Fed and the BOJ are both dropping their June policy decisions while Uncle Sam and China will give an update on their inflation trends.

Global PMI’s & U.S. jobs data had traders running to CHF & JPY this week, so much that they survived the USD’s last minute pump after the Non-Farm Payrolls report!

Super busy week as U.S. jobs data, global PMI’s & central bank events influenced interest rate expectations, almost daily, resulting in a very mixed relative performance picture.

It was a rally and reverse kind of day for the U.S. dollar, as it unwound its intraday gains while traders braced for a potential NFP miss.

As expected, the European Central Bank (ECB) lowered interest rates by 25 basis points but surprisingly dampened the likelihood of further easing soon.

“Risk” assets and dollar counterparts saw gains during the U.S. session as more traders priced in a potential interest rate cut by the Fed.

The BOC cut its interest rates by 25bps as expected and hinted at future rate cuts. So why did the Loonie regain most of its losses?

Is an interest rate cut from the European Central Bank (ECB) a done deal this June? And are they likely to follow through with more easing moves in the next months?

Australia’s economy grew by 0.1% q/q in Q1 2024, slower than the 0.3% q/q uptick in the previous quarter and the 0.2% q/q increase that the markets had expected.

Concerns about the U.S. economy encouraged a risk averse environment and pushed the U.S. dollar higher against its “riskier” counterparts.

Spot gold is gaining ground on overall U.S. dollar weakness while the Canadian dollar is attracting bearish demand ahead of BOC’s decision.

U.S. May PMIs came in mixed, with the S&P Global reading revised higher while closely watched ISM release surprised with a deeper contraction.

We’ve got a busy trading week ahead of us since a couple of major central banks are scheduled to announce policy decisions, plus the U.S. NFP is lined up, too!

CHF was the one currency to rule them all thanks to positive developments from Switzerland & broad risk-off vibes from geopolitical catalysts & shifting sentiment on economic activity ahead. 

Market players had a lot to digest including property sector updates in China, geopolitical risks, & the always anticipated U.S. core PCE Price Index update!

Revised U.S. economic growth data sent the U.S. dollar and other major financial assets all over the charts yesterday!