Market participants are bracing for potential interest rate cuts in both the Eurozone and the United States, forecasting significant shifts in global financial landscapes. The US Federal Reserve is expected to implement two 25-basis-point cuts while the European Central Bank (ECB) is anticipated to enact four similar reductions. Meanwhile, gold prices are holding near record highs, and the US Dollar is experiencing notable weakness. This depreciation is easing concerns about the Trump administration's tariff policies and reflects a more flexible stance towards China.
The weakened US Dollar has had a considerable impact on currency pairs, with the EUR/USD trading close to multi-week highs around 1.0500. Similarly, the GBP/USD pair is gaining momentum, testing recent two-week highs near 1.2450. The British pound is drawing additional strength from promising advanced UK Manufacturing and Services PMI data.
In the current month, preliminary US Manufacturing and Services PMIs have been released, presenting mixed results. Despite this, there are signs of resilience in certain sectors, providing a nuanced picture of the US economic outlook.
In the world of digital currencies, Dogelon Mars (ELON) continues its rally. The cryptocurrency has surged over 18% this week, capturing the attention of investors and market watchers alike.