Financial News

The UK economy hits a Snag: April growth stalls as manufacturing falters and services sector output slows. Up next, the US CPI Report and the Fed decision.

UK claimant counts, employment figures, and the unemployment rate signal a deteriorating labor market environment supporting a near-term BoE rate cut.

It is a pivotal week ahead for the markets, with the Fed and the Bank of Japan delivering interest rate decisions. Forward guidance will move the markets.

Coinbase rallied 8%, while XRP faced a weekly loss despite both battling the SEC in the Courts. Court rulings from both cases could impact the crypto market.

Steady job growth and wage increases indicate a robust U.S. labor market, supporting bullish sentiment despite slight revisions in previous months.

Investors are hoping the NFP report indicates a soft landing scenario, where job openings and hiring slow, but layoffs remain minimal.

The pause in Chinese gold purchases triggered a sell-off, but potential weak U.S. economic data and subsequent rate cuts could support XAU/USD prices.

On Friday (June 7), the German economy was in the spotlight, with German trade terms and industrial production in focus. German Trade Surplus Narrows as Exports Decline In April, the German trade surplus narrowed from €22.3 billion to €22.1 billion. Economists expected a trade surplus of €22.6 billion. Furthermore, exports

Natural gas traders will also stay focused on weather forecasts’ dynamics.

The ECB Governing Council cited an updated assessment of the inflation outlook and the strength of monetary policy transmission as key factors in their decision.

German factory orders continued to signal a weak demand environment, aligning with recent survey-based data, including the Manufacturing PMI.

High business activity and faster new orders growth pushed the index to multi-month highs.

Annual pay growth remained steady at a 5% rate for the third consecutive month, reflecting a deceleration in wage gains alongside job creation.

South Africa faces a period of greater political fragmentation and reduced governability, adding pressure in the face of rising economic, social and fiscal challenges that need to be addressed by the next government.

Treasury yields tested weekly lows as bond traders bet on a less hawkish Fed after the release of JOLTs report.

The challenges of dealing with rising debt and gradual de-dollarisation, which might both accelerate after this year’s presidential election, constitute growing pressure points for the sovereign rating of the US.

According to the report, companies demonstrate an unwillingness to invest due to current monetary policy.

In the week ahead, the US data could influence investor bets on a September Fed rate cut as the BoC and the ECB prepare for 25-basis point rate cuts.

Investor sentiment toward the Fed rate path, US politics, and SEC vs. crypto case-related news influenced buyer demand for BTC and broader crypto market.

Stability in inflation and income growth suggests a steady economic environment, although slightly softer personal spending growth warrants attention.