On Friday, the dollar index (DXY) fell to a two-week low, finishing down 0.14% influenced by improving US-Iran peace prospects and a 1% drop in WTI crude oil, which lowered inflation expectations. Meanwhile, the US May MNI Chicago PMI rose sharply by 13.5 points to 62.7, surpassing expectations of 50.3 and marking the strongest expansion in 4.25 years.
German labor market indicators strengthened as May unemployment unexpectedly fell by 12,000, while the unemployment rate declined to 6.3%. These developments, alongside hawkish ECB comments hinting at a potential 25 basis point rate hike in June, led to an 89% chance in the swaps market for such an increase at the next policy meeting.
In Japan, industrial production rose 0.8% in April, and retail sales increased by 1.3% month-over-month, showing stronger economic signals. However, the Tokyo CPI rose 1.4% year-over-year, falling short of expectations, leading to a 79% chance of a 25 basis point BOJ rate hike at the June 16 meeting.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
