Lagarde has no time for rate pauses 🙄

PLUS: The RBA did WHAT? 😲

Hey you! It’s Friday! 🥸🎶

@averagerob

WE’RE BACK! IT’S FRIDAY GODVERDAMN! STOP WORKING! 🎉😍 — #tgif #friday

Only have a minute? ⏱

Key Takeaways:

  • Christine Lagarde was not f*cking around this time as she delivered news about the European economy. 🤷 She took the stage shortly after the ECB raised interest rates again to 3.5% ☝️

  • Jessica must have gone to the states last month because US retail sales unexpectedly went up in May. 🛍️ Up 0.3% beating the consensus of -0.1%.

  • The last interest rate decision in China was 3.65%. The last 9 decisions? 3.65%. And the consensus for tomorrow? You guessed it! 3.65% 🙌 

  • Well the RBA pissed off all of the Australians and now they’re coming to rub it in. Last week the RBA announced yet another interest rate increase, bringing the total rate up to 4.1%. It hasn’t been this high in over 10 years! 🤯

Lagarde Has No Time For Rate Pauses 🙄

Christine Lagarde was not f*cking around this time as she delivered news about the European economy.

She took the stage shortly after the ECB raised interest rates again to 3.5%. 📈

Here’s a look at what she left us with:

We’re not even considering a pause at this point. ⏸️

In terms of having to pause or having to skip - as I said, number one - we have not discussed it at all and we have not begun thinking about it because we have work to do.

Inflation is f*cked and it’s not coming down quickly enough. 💵

Under the current parameters, 2.2% in 2025 is not satisfactory, and it's not timely. Inflation has been coming down but is projected to be too high, for too long.

Another rate hike might be (definitely is) coming in July. Sorry not sorry.🙇‍♀️

Bearing a material change to our baseline, it is very likely the case that we will continue to raise rates in July, which probably doesn't come as a surprise. This is because we are determined to reach our target in a timely manner. We are not thinking about pausing, as you can tell.

Where the hell do we go from here? 🙋

Economic growth is likely to remain weak in the short run but strengthen in the course of the year as inflation comes down and supply disruptions continue to ease.

America Gone Wild 👀

Jessica must have gone to the states last month because US retail sales unexpectedly went up in May.

Up 0.3% beating the consensus of -0.1%. 👊

Looks like a lot of folks are driving around in new whips as automobile sales jumped 1.4%.

Summer must be around the corner as building materials and gardening equipment are up 2.2%.

Yo, is that a new couch? 🛋️ Furniture, electronic and appliance stores had increased sales.

And restaurant and bar sales were also positive. Anyone still hungover?

This smells like new money to me. 👃 

A bunch of you got a raise and now you’re out here acting wild.

Monday News

Monday will bring us late night news from China and Australia. 😴

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

  • 21:15 — Will The Bank Of China Resist? ✊

    • Event: PBoC Interest Rate Decision

    • Major pairs to watch: USDJPY

  • 21:30 — The RBA Did WHAT? 😲

    • Event: RBA Meeting Minutes

    • Major pairs to watch: AUDUSD

Will The Bank Of China Resist? ✊

The last interest rate decision in China was 3.65%.

The last 9 decisions? 3.65%.

And the consensus for tomorrow? You guessed it!

3.65% 🙌

But after retail sale news yesterday, will China be able to hold steady on the rate? 👀

Chinese consumers are spending less money. Even with a positive retail sales value, we can see the momentum declining fast.

China’s central bank may have to kick things into high gear by lowering interest rates. If money is more easily available to the people of China, they might want to start spending it.

The RBA Did WHAT? 😲

Well the RBA pissed off all of the Australians and now they’re coming to rub it in.

Last week, the RBA announced yet another interest rate increase, bringing the total rate up to 4.1%. It hasn’t been this high in over 10 years! 🤯

And now, with recent news of tens of thousands more Australians finding work, they’re really not going to be happy with y’all. You might see a little stink eye coming from the panel.. aaaand discussion of further rate increases.

But wanna hear the real kicker? 👀

After the last meeting, where they made everything more expensive for the people living in Australia, they spent $25,000 on a dinner. LOL. Nice one, RBA.

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@tradezie

Don’t worry Australia.. even if the RBA isn’t happy for you, we are! Beating a consensus of +15,000 jobs and following a 4,300 job loss i... See more