Key Takeaways:
- 📈 US business activity accelerated to the highest level in just over two years in May
- 🇺🇸 Dollar rose against the euro in response to strong U.S. economic data
- 📉 Euro was down 0.2% against the dollar
- 💰 Ether cryptocurrency surged amid speculation over U.S. spot exchange-traded funds approval
- 📊 Swaps fully price in a full quarter-point rate cut in December
- 🔒 Fed members want to see progress on inflation before any rate cut
- 📈 Bitcoin fell 2%, while oil and gold retreated
- 📆 Key events this week include Japan CPI, Canada retail sales, Germany GDP, US durable goods, and consumer sentiment
- 💲 Treasury yields climbed, with shorter maturities leading the move
- 📈 Yields on 10-year Treasuries, Germany, and Britain advanced
- 🛢️ West Texas Intermediate crude fell 0.9% and spot gold fell 1.8%
- 🇬🇧 Pound slipped against dollar as Conservatives expected to lose UK election
- 🇯🇵 Japanese yen at 156.91 against dollar, factory activity in Japan shows expansion
- 🇳🇿 New Zealand dollar down after retail sales rise unexpectedly
US Economy Shows Resilience in Global Markets
The US economy showed signs of improvement in May, with business activity accelerating to the highest level in over two years. This positive growth led to a rise in the dollar against the euro, as investors turned to the US currency as a safe haven.
Amidst speculation over the approval of US spot exchange-traded funds, the Ether cryptocurrency surged in value. However, the Euro saw a decline against the dollar, while market bets on interest rate cuts further weakened the European currency.
While US stocks and bonds retreated due to the accelerated business activity and pickup in inflation, shorter maturities in Treasury yields led to a climb in rates. Additionally, key events such as the Japan CPI, Canada retail sales, Germany GDP, US durable goods, and consumer sentiment are expected to impact global markets in the coming days.
Overall, the global markets have been influenced by the strength of the US economy, with various currencies and commodities experiencing fluctuations in response to the economic data and geopolitical events.