The European Central Bank (ECB) has decided to cut its three key interest rates by 25 basis points. The deposit facility rate is now 2.25%, the main refinancing rate is 2.40%, and the marginal lending rate is 2.65%. These changes, effective from April 23, 2025, are part of the ECB's ongoing efforts to manage inflation and support the euro area's
The Bank of Canada kept its interest rates steady at 2.75% due to increasing uncertainty from U.S. trade policies and tariffs, which are affecting global growth and raising inflation concerns. Global growth was strong in late 2024 but is slowing. The U.S. economy is weakening due to rising uncertainty, and inflation expectations are rising. Europe is struggling, especially in manufacturing, and
Amid ongoing trade tensions, the U.S. dollar has experienced a significant decline in strength across global markets, dropping below the 100.00 mark in a short period of time. This shift signals rising uncertainty regarding the future demand for the dollar. The rapid depreciation reflects concerns about potential changes in economic conditions, trade policies, and geopolitical dynamics. As the dollar weakens,
Gold has recently risen above the $3050 level, reflecting a strong demand for safe-haven assets in the face of ongoing economic uncertainty. This upward movement is driven by investors seeking stability amidst inflation concerns, geopolitical tensions, and potential market volatility. The recovery suggests a potential move toward $3100 in the short term, as gold continues to benefit from its role
Trump's tariffs have created turmoil not only in the U.S. market but also in global markets, with Germany being no exception. The DAX has seen significant price moves to the downside, reaching almost -20% from its all-time highs, with a slight recovery below 20,000.00. Further uncertainty could potentially create even bigger levels of volatility, threatening gains made in 2024. However, a
Oil prices have dropped significantly due to a combination of geopolitical tensions and market dynamics. Price drop of nearly 15% decline since the beginning of April has been driven by concerns over new U.S. tariffs that could dampen global demand and potentially trigger a recession. President Trump's announcement of tariffs, starting at 10% and escalating to 50%, has raised concerns
In March, economic activity in the U.S. services sector expanded for the ninth consecutive month, with a Services PMI® of 50.8%. The Business Activity Index rose to 55.9%, showing continued growth for the 58th month in a row. The New Orders Index decreased to 50.4%, indicating a slight slowdown in demand. The Employment Index dropped to 46.2%, marking the
On Thursday, the S&P 500 lost $2.4 trillion in value, marking its biggest one-day drop since the market crash during the early days of the COVID-19 pandemic in March 2020. The selloff was triggered by comments from U.S. President Donald Trump, who raised fears of a full-blown trade war, particularly with China. These concerns led to worries about a global
The tariffs implemented under President Trump have had a significant impact on the major currency pairs, and GBP/USD has not been an exception. The strong impulse generated by these tariffs has pushed the GBP/USD pair above the 1.31200 level. This movement has created upward momentum, signaling potential further movement to the upside in the near term. On a directional basis, this
In March, U.S. manufacturing activity contracted, with the Manufacturing PMI® dropping to 49%, signaling a slowdown after two months of growth. Key indicators showed weaker demand and production, including a drop in the New Orders and Production indexes. Employment also declined as companies reduced staff. Inventories increased, likely due to stocking up ahead of potential trade issues, while input costs
Orange juice prices have plummeted due to falling demand, partly from high prices and bitter taste caused by poor-quality crops in Brazil. Prices dropped from $5.26 in January to below $2.50. Poor quality and higher costs have deterred consumers, while a larger upcoming crop in Brazil has further reduced prices. Despite falling prices, retail prices remain high due to existing
On 20 March 2025, the Swiss National Bank (SNB) lowered its policy rate by 0.25% to 0.25%, effective 21 March 2025. This change applies to sight deposits at the SNB, where banks will earn interest at this rate up to a certain limit and 0% above that. The SNB is also ready to act in the foreign exchange market if
Gold prices soared to a record high on Thursday, getting close to the key milestone of $3,000 per ounce. The surge was fueled by ongoing tariff uncertainty under former President Trump and rising expectations that the U.S. Federal Reserve will ease monetary policy by cutting interest rates. This rally is part of a broader trend, with gold prices up nearly
In January 2025, real GDP fell by 0.1%, after a 0.4% growth in December 2024. The decline was mainly due to a drop in production. However, GDP grew by 0.2% over the three months to January 2025, driven by a 0.4% growth in services. Services output increased by 0.1% in January and grew 0.4% over the three months. Production
The Consumer Price Index (CPI) for All Urban Consumers (CPI-U) increased by 0.2% in February, following a 0.5% rise in January. Over the past year, the overall CPI increased by 2.8%. The shelter index rose 0.3% in February, contributing to nearly half of the monthly increase. This was offset by a 4.0% drop in airline fares and a 1.0% decline
The U.S. services sector continued its expansion for the eighth consecutive month in February, with the Services PMI® registering 53.5%, up from 52.8% in January. This indicates ongoing growth since the recovery from the pandemic-induced recession began in June 2020. The Business Activity Index was at 54.4%, slightly down from 54.5% in January, but marking the 57th month of expansion.
U.S. manufacturing activity expanded slightly in February after 26 months of contraction, with the Manufacturing PMI® registering 50.3%, a slight drop from 50.9% in January. While the overall economy continued to expand, some key indices showed mixed results. The New Orders Index fell into contraction at 48.6%, and the Production Index showed marginal growth at 50.7%. The Prices Index surged
In the fourth quarter of 2024, the U.S. economy grew at an annual rate of 2.3%, down from 3.1% in the third quarter. This growth was mainly driven by increased consumer and government spending, though it was partly offset by a decrease in investment. Imports, which subtract from GDP, also decreased. The GDP estimate was revised slightly upward by less than
The Reserve Bank of Australia (RBA) has reduced its interest rate by 0.25% to 4.10%, marking its first rate cut since November 2020. This decision comes as inflation slows down, giving the RBA room to ease its policy. While the RBA is taking action to support the economy, it remains cautious. The central bank plans to keep future rate cuts gradual,
In December 2024, the UK's Gross Domestic Product (GDP) increased by 0.4% compared to November, driven by growth in the services sector. This followed a smaller 0.1% rise in November. For the three months leading up to December, the UK's GDP grew by 0.1% from the previous quarter. In the fourth quarter of 2024, the UK economy grew by 0.1%,
The U.S. Consumer Price Index (CPI) for January 2025 rose by 0.5% on a seasonally adjusted basis, following a 0.4% increase in December. Over the past 12 months, the all-items index grew by 3.0%. Key contributors to the monthly increase included shelter (0.4%), which accounted for nearly 30% of the rise, energy (1.1%), with gasoline prices up 1.8%, and food
In January 2025, U.S. manufacturing activity expanded after 26 months of contraction, according to the latest Manufacturing ISM® Report. The Manufacturing PMI® rose to 50.9%, signaling growth. This was a 1.7 percentage point increase from December's 49.2%. Key highlights: New Orders: Increased to 55.1%, continuing a recovery after several months of decline. Production: Rose to 52.5%, returning to expansion after eight months
The Federal Reserve decided to keep its benchmark interest rate between 4.25% and 4.5%, after cutting rates three times starting last fall. This pause comes as inflation remains around 3%, which could make additional cuts risky. The Fed is taking a wait-and-see approach, especially with President Trump's economic policies in play. Fed Chair Powell noted that inflation expectations are stable,
US consumer confidence fell in January, with the Conference Board Consumer Confidence Index® dropping 5.4 points to 104.1. December's reading was revised up to 109.5 but still showed a decline. The Present Situation Index, measuring current business and labor conditions, dropped 9.7 points, while the Expectations Index, reflecting outlooks on income, business, and jobs, fell 2.6 points but stayed above