Interest Rates

The PCE data signaled another disinflation wave in the US economy, leading the US dollar to weaken in all major currency pairs.

EUR/USD soared to the 1.0930 range, while EURJPY reached its highest level in 15 years due to ECB hikes in interest rates,

The Fed interest rate announcement didn't surprise most traders. But, the scale of the increase in future projections was surprising.

The US labor market report for May 2023 revealed a significant increase in NFP Data, surpassing consensus estimates by reaching 339,000 jobs created compared to the expected 180,000.

Neel Kashkari said that The Fed may need to raise interest rates to over 6 percent to achieve the inflation target.

The release of several recent US economic data was not encouraging, but a reassessment of global interest rate expectations and market risks has benefited the US dollar.

The Reserve Bank of Australia has raised interest rates by 25 basis points, citing concerns about persistently high inflation pressures.

The Eurozone's inflation rate has significantly decreased, while the core inflation rate has hit a new record high. This situation has trapped EUR/USD ahead of next week's ECB meeting.

Swiss National Bank raised interest rates by 50 bps simultaneously, ignoring the recent Credit Suisse crisis.