America escapes an economic collapse 🤯

PLUS: Will Japan finally cave? 👀

Today, all US banks and markets will be closed for Juneteenth.

A day to commemorate African American slaves gaining their freedom in the United States. ✊🏾

“Juneteenth has never been a celebration of victory or an acceptance of the way things are. It's a celebration of progress. It's an affirmation that despite the most painful parts of our history, change is possible—and there is still so much work to do.”

Barack Obama

Only have a minute? ⏱

Key Takeaways:

  • While the rest of the world is fighting to see who can increase interest rates the fastest, the Bank of Japan made no changes to their negative interest rate. The consensus of -0.1% was spot on. 👌🏼

  • Japan: Ueda left some room for speculation. 👀

  • Looks like Americans think the economy is headed in the right direction. Who would have thought? MCSI increased from 59.2 in May to 63.9 in June. 😁 But let’s dive deeper into how they’re really feeling.

  • Japan: No one can forecast what they’re going to say in the policy meeting tomorrow but we do know two things:

    • If these folks are hawkish about the economy, the value of JPY goes up. 👆🏼

    • If they’re dovish, the value of JPY goes down. 👇🏼

Before we get started tho…

HAVE Y’ALL SEEN THIS?

Nasa fr told us they found Aliens and no one is talking about it?

Will Japan finally cave? 👀

While the rest of the world is fighting to see who can increase interest rates the fastest, the Bank of Japan made no changes to their negative interest rate.

The consensus of -0.1% was spot on.

Although I have to admit, I was doubtful.

Even though inflation has been sitting above 2% for 13 months straight - well beyond their target - they are determined to stick with this strategy.

Or are they? 👀

Ueda left some room for speculation:

“At present, inflation has exceeded 2% for 13 straight months but could fall below that level ahead. That's why we are not normalising monetary policy. But if that view changes sharply, we will have to change policy…”

Kazuo Ueda, Governor of the Bank of Japan

Will Japan say f*ck it to their “patient” approach to stimulate the economy?

After they see the new quarters’ inflation and growth numbers next month, experts think we might see Ueda shake things up.

Low income & difficult times ahead in the USA? 😨

Looks like Americans think the economy is headed in the right direction.

Who would have thought? 🤔

MCSI increased from 59.2 in May to 63.9 in June.

After four months of sh*tty scores, perhaps consumer sentiment has finally taken a turn for the better.

What boosted the American shopper’s morale?

Inflation seems to be calming down and the US avoided an economic catastrophe by suspending their debt ceiling.

Debt ceiling? 🧐

Basically, the debt ceiling is the maximum amount of money that the government can borrow from investors. 🏦

By pausing it, the government can't borrow any more money and they must use what they already have to pay their bills.

It looks something like this.

Let’s say you ask your friend to borrow some money and they tell you the most they’ll give you is $100.

You take the $100 and then you ask for more.

A pause in the debt ceiling is when they say “no way homie, use what I already gave you!” 🙅🏽

A raise in the debt ceiling would be like “Yeah man no sweat, take another $100.” 🙌🏾

Why is that such a big deal?

Apparently, had America not voted for a suspension, they would have seen the first ever ‘default’ in history.

A default would pretty much mean that the US couldn’t afford to make their bill payments.

"We averted an economic crisis, an economic collapse,"

Joe Biden, President of the USA

So Americans are just fully vibing with America now?

Not quite. Even though sentiment is 28% higher than it was last year, it’s still a lot lower than it has been in the past.

Americans are still expecting low income and difficult times over the next 12 months.

Tuesday News

Only one high impact event tomorrow evening. Might be a good day to sneak in a mid-afternoon nap. 😴

Here’s what you’re in for:
(All times in EST)

  • 19:50 — When JPY talks, you’d better listen 👂🏻

    • Event: BoJ Monetary Policy Meeting Minutes

    • Major pairs to watch: USDJPY

When JPY talks, you’d better listen 👂🏻

So a bunch of really important people are getting together in Japan to have a meeting about the outlook of the Japanese economy. 🇯🇵

And because they’re trying to be transparent, or so they say, they release details from this meeting to the public.

These details will affect the value of JPY and y’all might be able to take advantage of the movement. 😏

No one can forecast what they’re going to say in the meeting but we do know two things:

If these folks are hawkish about the economy, the value of JPY goes up. 👆🏼

If they’re dovish, the value of JPY goes down. 👇🏼

Now, why tf do they call it hawkish and dovish?

They are dead*ss talking about the birds.

Hawks are aggressive. Doves are chill and conservative. 🕊

Who knew? 🤷‍♀️

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