🤺 Bank of England losing its battle with inflation?

Happy Monday!

Hope you’re not too bored without any high-impact news to stir sh*t up today.

But if you are, this might give you a chuckle.

Only have a minute? ⏱

Trade Of The Day 📈

Is Gen Z Responsible For Canada’s Job Losses? 👀

Which one of you predicted Canada would gain 23,000 jobs last month? 🧐 Because you were WAY off.

Canada actually lost over 17,000 jobs which were all full-time gigs.

Luckily, we’ve found someone to blame.

Gen Z.

They came in and screwed it all up. 🙄

Canadians aged 25-54 gained about 63,000 jobs but the 15-24 age group lost over 77,000 jobs last month. Rough go.

And on top of that, the unemployment rate went up for the first time since last year - from 5.0% to 5.2%.

But on the bright side, for those of you who still have jobs, the average hourly wage increased by 5.1%. Congrats! 🥳

Tuesday News

Set your alarms. It’s going to be an early morning. ☀️

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

• 02:00 — UK: Less Jobless Benefits But Also Less Jobs? 🧐

  • Event: Claimant Count Change (May), ILO Unemployment Rate (3M)(Apr) 

  • Major pairs to watch: GBPUSD

• 02:00 — Inflation Is Costing You Money 🙃

  • Event: EU: Harmonized Index of Consumer Prices (YoY)(May)

  • Major pairs to watch: EURUSD

• 08:30 — Will The US Inflation Rates Hold Steady?🇺🇸

  • Event: Consumer Price Index ex Food & Energy (MoM)(May) & (YoY)

  • Major pairs to watch: USDCAD

• 10:00 — Is the Bank of England Losing Its Battle with Inflation? 🤺

  • Event: BoE's Governor Bailey speech

  • Major pairs to watch: GBPUSD

UK: Less Jobless Benefits But Also Less Jobs? 🧐

Claimant Count Change is just a funny way of saying ‘Here’s how many unemployed people there are in the UK!’.

We will get a peek at how many people in the United Kingdom are claiming jobless benefits. In April, there were more than 47,000 new unemployed people that needed help from the government. 🆘

The prediction for May? It looks like 9,600 of those people found jobs and are no longer claiming unemployment benefits! 🍾

Expect GBP/USD ↑

And under the same umbrella of news were going to get hit with this quarter’s unemployment rate in the UK.

Following a 3.9% rate last quarter, the consensus is an increase to 4%. 

This will tell us how many people don’t have a job but are actively trying to find one. 👀

Inflation Is Costing You Money 🙃

Let’s take a look at the annual rate of inflation in the EU.

How much have prices changed since last year? 👀

April showed a 6.3% increase in prices and May looks no different. The rate is predicted to remain unchanged at 6.3%.

How does inflation affect me? 🧐

Well if you went shopping last year and bought a new jacket for $100, that same jacket now costs $106.30.

Now, maybe that doesn’t seem like much. But when you add 6% onto every purchase you make, it really does start to add up. 💰

Money simply can’t buy as much as it used to.

Based on HICP predictions, the rate of inflation looks stable for now. 🏷

Will The US Inflation Rates Hold Steady?🇺🇸

The US is also going to deliver some inflation numbers to us with their Consumer Price Index (CPI).

But they won’t include food or energy in these numbers. Basically, gas and grocery prices change too much and it f*cks up the accuracy of the CPI. ⛽️

It looks like we won’t be seeing a change from April’s month-over-month rate of 0.4%. We’ve got the same consensus for May.

And year-over-year, we’re looking at a slight increase. From 5.5% to 5.6%.

Expect USD/CAD ↑

With these numbers indicating that the rate of inflation is slowing down, we may see a pause in the US interest rate hikes. 🤞🏾

No need for the bank to keep making things more expensive for Americans.

The current price tags seem to have scared away enough shoppers that businesses weren’t able to raise their prices; this month anyway. 🤷‍♀️

Is the Bank of England Losing Its Battle with Inflation? 🤺

Bailey’s been feeling the heat lately. The Bank of England keeps hiking interest rates but inflation won’t slow down.

Clearly their battle with rising prices is not going so well but Governor Bailey claims it’s too early to say if it’s lost.

He did admit, however, that there are some “big lessons to learn” for the Bank of England. They’ve got some work to do on deciding monetary policy seeing that the bank didn’t even have these persistent price hikes on their radar.

Some✌🏻wise✌🏻 words from Bailey:

Let’s hope he’s got more than that 👆🏼 for us tomorrow.

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