Have you ever gone on a first date and realized early on that the two of you didn’t hit it off?

And now the rest of the evening feels painfully long?

That’s sort of the same feeling I get when I’m at work on a Friday. So let’s get this over with. 🤪

Only have a minute? ⏱

Eurozone battles rising prices and sh*t salaries 🤺

The ECB after reading the retail sales report:

Retail sales were worse than anticipated; or better depending on who you ask.

Growth since last month? A big fat zero! 🙅🏽

And down 2.9% annually.

Shoppers were determined to save more than they spent. Which meant little to no extra food, drink, tobacco, fuel or even online purchases. 🛍

They bought what they needed and popped the rest into their piggy banks.

Food and drink sales were down 0.5% and gas sales dropped 0.3%. 🍕

Non-food items did slightly better with a 0.1% increase in purchasing – though this was offset by a 0.9% decrease in online shopping habits.

Showing that people weren't enticed enough to part with their cash even with the promise of convenience. 🤷🏻

EU consumers are facing an uphill battle against rising prices and sh*tty salaries – making it increasingly difficult for them to afford necessities that are becoming ever pricier by the day. 😕

Fed can’t keep up with booming US job market 🔥

The U.S. labor market was in full swing this June with companies creating more than DOUBLE the amount of jobs than what was expected. 🤯

497,000 jobs were added for June - a figure that dwarfed the May gain of 267,000 and blew past the general consensus of 220,000.

This was the biggest monthly gain in over a year!

Not enough to get your attention? 👀

Annual pay also rose at a 6.4% rate.

If you thought the Fed was going to pause the the rate again in July, you better start thinking again. 😬

They’ve spent the last year hiking the rates in large part to cool the jobs market but employment and wages are still hot.

Powell’s going to start losing (more of) his hair.

How does raising interest rates affect the job market? 🙋🏻

This one has everything to do with the business themselves. Banks charge businesses more to borrow so they’re less likely to start new projects or expand.

New projects create new jobs. No expansion = no new employees. ❌

Plus, businesses will start losing employees as profits dwindle. Less money coming in the door means more employees leaving out of it.

Service sector is thriving & the Fed is FUMING 🤬

The U.S. services sector, which accounts for more than 65% of the economy, is making a comeback.

Services PMI came in at 53.9. Up from last month’s 50.3 and beating the consensus of 51.0. 👏🏻

New orders were up despite higher borrowing costs, exports were booming, and businesses are ramping up their activities.

And again, the Fed is pissed.

Why would they be unhappy that the service sector is doing well? 🧐

After 500 basis points worth of interest rate increases, the US economy will not give.

Think about it this way:

The Services PMI measures the activity level of service sector businesses, such as restaurant owners, retail shops, and hotels. 🏩

This higher than expected reading indicates that these businesses are doing well and consumers are spending more money on services.

The increased spending means higher demand which results in higher inflation - which is the opposite of what the Fed wants to achieve.

Is anyone still thinking that they’ll keep the rate paused at this point? 👀

Trade Of The Day 📈

Remember yesterday when we said to expect EURUSD to go down? 😏

Well, would you look at that:

EURUSD

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