Apparently, today is ‘Ugliest Dog Day’.

You’re supposed to show pictures of funny looking dogs for everyone to enjoy.

My ex was pissed when I shared a picture of him this morning. 🤷‍♀️

Only have a minute? ⏱

China finally changing sh*t up 👀

Looks like China couldn’t hold out any longer. 🤷🏻

After 10 consecutive months of no interest rate changes, they finally gave in and lowered the rate by 10 basis points.

Now sitting at 3.55%.

How does this help the economy?

Cutting interest rates makes things cheaper for both businesses and consumers.

More borrowing, more spending. 🏦 🛍

Businesses can borrow money to invest in things like new equipment which can bring down costs. Lower costs can mean lower prices for the customer and higher profits for the business.

And the consumer can also start borrowing for those bigger ticket items that might need financing. A new car might start to look nice. 👀

The RBA is fighting and Aussies are broke 🙄

There was a dip in AUDUSD after we heard about the huge fight that broke out at the last RBA meeting. 🤺

Just kidding.. it wasn't that bad. They were just in a bit of a pickle.

The board members couldn't agree on whether or not to hike the rates. Which comes as a big surprise as this seems like the first debate around keeping the increase going.

What does that mean? 👀

Australians might see lower interest rates sooner than later.

But inflation is still stubbornly high. And to make matters worse, electricity prices are going up and rent is high as f*ck.

Which in turn means spending was down in the second quarter. Some households are seriously strapped for cash right now. 💰

Like always, they end the meeting by telling the world they are committed to bringing inflation back down to the target.

I'm just not so sure they’ll agree on how to get there. 😬

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Wednesday News

The middle of the week already? 👀

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

• 02:00 — It’s about damn time: CPI declines in the UK (maybe) 🇬🇧

  • Event: BoE: Consumer Price Index (YoY)(May)

  • Major pairs to watch: GBPUSD

• 08:30 — Canada makes a comeback? 👀

  • Event: Canada Retail Sales (MoM)(Apr)

  • Major pairs to watch: USDCAD

• 10:00 — Powell gets ready to take some heat 🥵

  • Event: USA: Fed's Chair Powell testifies

  • Major pairs to watch: EURUSD

It’s about damn time: CPI declines in the UK (maybe) 🇬🇧

Time for the Bank of England to see if these rate hikes have made any difference in inflation.

Remember: inflation is the increase in prices of goods and services. If inflation goes down, prices go down. 👇🏼

Since December 2021, they’ve cranked up the interest rates from 0.1% to 4.5%.

BoE started this year with a 10.1% inflation rate, jumped to 10.4% in February then back down to 10.1% in March.

After starting back at square one, April showed the biggest decrease. The last report showed inflation was down to 8.7%. 📉

Experts say that tomorrow we will see CPI drop to 8.2%.

Expect GBP/USD ↑

So what's causing this sudden drop?

Well I’m sure the BoE would love to take all the credit with their crazy interest rate hikes but there are a few other things to consider. 🧐

Some large increases in price that happened over a year ago will no longer be taken into account.

Plus the government made energy bills cheaper! 🧾

They introduced the ‘Energy Price Guarantee’: basically a promise that the cost of energy will stay the same for a certain period of time.

These things should all contribute to a smaller CPI report. 👌🏼

Canada makes a comeback? 👀

After the last sh*tty report, Canada is banking on some better news for retail sales in April.

March showed a decline of 1.4%.

Canadians were buying less cars, less car parts, and filling up their tanks less.

I can attest to this. Bikers everywhere in Canada. 🙄

More people were buying building material, garden equipment, sporting goods, and stuff for hobbies.

Basically, the temperature rises to +5°C in Canada and everyone starts getting ready for the summer. ☀️

The consensus for tomorrow suggests things will be looking up with an increase of 0.2%.

Expect USDCAD ↓

Hey. It’s better than nothin’. 🤷‍♀️

Powell gets ready to take some heat 🥵

Congress gets to grill Powell tomorrow about the state of the US economy and the central bank’s policies. 😳

If I were him, I would be sh*tting bricks right now.

Who tf is ‘Congress’?

The US Congress is made up of a bunch of folks who make laws in the states.

They introduce ideas for new laws and vote on them before sending them off to the president for approval. 🇺🇸

And why are they meeting with Powell?

Jerome Powell is the Chair of the US Fed. He’s the big guns. 💪🏻

At this meeting, Congress will have the opportunity to ask Powell questions and figure out what the fed is thinking.

They use this information to make big decisions in the future and shape the US economy.

So yeah, you could say this is a big deal. 👀

The US recently paused the interest rate hikes keeping rates at 5-5.25%. But their inflation target of 2% is still far out of reach.

It’ll be interesting to see how he tries to explain himself out of this one.

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Technical Tip

XAUUSD Trading Hack 🚨

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