Trump's Forbidden Fruit!!

Issue Number: 8

Issue Pages: 40

Date: June 3, 2024

  • The US Growth Wanes
  • Madam Lagarde's Anticipated Tone
  • All Eyes on NFP

ePlanet Times No.8 weekly forex newspaper 

As a comprehensive forex-based resource, ePlanet Times (weekly forex newspaper) enables you to understand and analyze price movements in the global markets. Through this weekly newspaper we strive to create a suitable medium for our traders to recognize factors affecting prices and to prepare them for the key events in the coming week. By providing unbiased opinions and analyses, ePlanet’s analytical team accompanies you towards more conscious and well-informed decisions for their trades.   

An Overview of ePlanet Times NO.8 “Trump’s Forbidden Fruit”  

The eighth edition of ePlanet Times published on Sunday, strives to guide all market participants and traders towards more conscious and profitable trading decisions by providing in depth analysis of the global financial markets. This edition focuses on the most influential developments of the previous week while presenting key events in the coming week with potential scenarios and their impacts on the global financial markets.  

Let’s begin with the Weekly Wrap-up. The common theme in the financial markets over the past few weeks has been figuring out the “timing” of rate cuts since most of the central banks around the world are struggling to achieve their inflation targets. While initial efforts brought inflation down from its peak, reaching the desired 2% level seems out of reach. For instance, although the ECB is considering a rate cut in the month of June, the higher inflation rates in Germany, Spain, France and overall the Euro Area, make the European Central Bank’s next move quite challenging and difficult to decipher. 

On the other hand, ePlanet Times believes that the global economy is displaying mixed signals as Germany’s Business Climate Index remained stagnant but a slow crawl out of a slump seems promising. At the same time Australia’s high mortgage repayments fueled record low consumer confidence, but sticky inflation remains the biggest concern for the RBA as the market has yet again pushed back the pricing of the first rate cut as far as 2025.    

The US economy also experienced a slowdown in Q1 of 2024, with the slowest growth rate in two years; a weakness primarily caused by declining consumer spending, possibly due to concerns about inflation and high household debt. Friday’s release of the Core PCE data, a key inflation measure for the Federal Reserve, showed a slowdown in growth compared to March. This lower figure, coupled with other economic indicators, led markets to anticipate the Fed holding interest rates steady for a longer period than initially expected. 

In the News Digest section, ePlanet Times focuses on recent updates and developments reported by reliable news sources or stated by influential figures in the financial markets. In this edition you can come across news snippets from China, Japan and the Middle East.  

The coming week is expected to be quite hectic as it is the first week of the month and significant economic reports are scheduled to be released. ePlanet Times provides in-depth analysis of these key indicators, offering valuable insights for market participants and those interested in the global economic landscape. This week the markets will be anticipating both the US labor market data such as the NFP and the ADP as well as JOLTS Job Openings. A sign of weakness in the labor market could prompt markets to price in an earlier rate cut by the Fed, potentially impacting the dollar and commodities like gold.

The US manufacturing and services PMI reports are also expected to be released which are crucial, especially the reports on pricing and employment. They not only assess the health of these sectors, but also offer valuable insights into labor market trends.

Beyond the US, the European Central Bank (ECB) and Bank of Canada (BoC) interest rate decisions are in focus. Both are expected to cut rates, but the BoC might wait until July, potentially aligning with the Fed’s stance. This wait-and-see approach from the BoC reflects their historical tendency to move in tandem with the US central bank. 

The economic analysis of the week, Written by Reza Khantaraj, focuses on the US stock market and the overall sentiment, while the technical analysis of the week provides possible trading scenarios for symbols like AUDUSD, ETHUSD, Dow Jones and EURUSD. 

For a deeper dive into the reports and developments mentioned, we recommend exploring the eighth edition of ePlanet Times: Trump’s Forbidden Fruit”