Market Overview - Page 80

The Euro suffered a setback after the June PMIs revealed a slowdown in economic activity. Analysts were caught off guard by the contraction in French services, which dropped from 52.5 to 48.0 – far below the forecast of 52.2. Manufacturing.

The Bank of England raised its key rate by 50bp to 5.00% – a sharper move than analysts who had made their forecasts earlier in the week had expected. However, it’s a logical move, given that the latest inflation data.

UK consumer inflation is in no hurry to recede. Fresh estimates for May showed prices up by 0.7%, following even stronger rises in the previous three months. Overall, the CPI rose by 4.2% between February and May. Year-over-year price growth.

After a very mixed start to June, platinum, silver and gold are moving into a friendly downtrend. However, a technical correction is unlikely to break the long-term bullish trend. Platinum has lost over 3% since the beginning of the month,.

Oil ended last week with growth, having found support at key price levels, but unlikely for long. Last week, WTI tested its 200-week moving average for the fifth time since the beginning of the year but managed to bounce back.

On Thursday, the ECB raised three key interest rates by 25 basis points, taking the benchmark lending rate to 4%, the highest since 2008. It also confirmed its intention to refuse to refinance coupons and maturing bonds, accelerating quantitative easing.

The Fed has paused its policy tightening while projecting two more rate hikes this year and no policy easing in the near future. This is more hawkish than the market expected, which anticipated a hike in July and a possible.

US producer prices fell stronger than expected, potentially reinforcing the dovish argument at the Fed. For May, PPI declined by 0.3% m/m, more than the expected 0.1%, and the index gained a modest 1.1% y/y after 2.3% a month earlier..

The Fed’s rate decision is the most anticipated event of the day and possibly the coming weeks. As usual, the markets have a strong consensus on what the central bank will do in the short term, but they are more.

US consumer inflation slowed to 4.0% y/y in May from 4.9% y/y. The monthly gain was 0.1%. In both cases, the data was 0.1 percentage point weaker than expected, marking a slightly faster decline in the inflation problem than expected..

Oil lost more than 4% since the start of Monday, retesting the lower end of its range for the last three months. WTI briefly traded below $67.0 and Brent below $72. On Tuesday, oil is enjoying buying at the lower.

Inflation in China remains worryingly weak, official producer and consumer price data for May confirmed today. The CPI was up 0.2% y/y last month, only slightly increased from the 0.1% y/y pace in April. The producer price index shows that.