26 years ago, on this day, the first Harry Potter book was published which eventually made J.K. Rowling a billionaire.

So what will you do with your Monday? 😜

Only have a minute? ⏱

How do you say ‘yikes’ in German? 😶

The German economy isn't running as smoothly as it used to…

Remember hat Composite PMI we talked about last week? The one that was only supposed to drop from 53.9 to 53.5?

Well it actually dropped to 50.8. 😬

Now, the score is still above 50 which means things are growing, but not nearly as fast. June is looking like one of the weakest months of the year so far.

And the Manufacturing PMI that was expected to increase to 43.5 from 43.2?

It also dropped. Now sitting at 41.0. 👇🏼

That’s the lowest score we’ve seen in just over 3 years.

So what happens now?

This could mean less jobs in the manufacturing & service sectors which turns into less spending and leads to slower GDP growth.

But let’s not be hasty.

Once June is over, S&P will update these numbers and we will have a better idea of how things are looking. 🔎

BoE’s plan to send the UK into a recession? 👀

Things aren’t looking so hot for the UK either. 🥵

Service PMI score dropped from 54.0 to 52.8. This is the lowest score we’ve seen in 3 months.

What does this score tell you? 🙋🏻

That growth is slowing in the service and manufacturing industries in the UK. Lower consumer spending, not as many new orders coming in, things like that.

Why is that happening? 🙋🏽‍♂️

We can blame the BoE for that one. Go figure, eh?

Those wicked high interest rates may finally be starting to scare people away.

And they’re not even done yet. 😬

With hiring still going strong and wages on the rise in the service sector, prices remain high.

And what does the BoE do when they see high prices? 🧐

They hike the interest rates. Like we saw on Thursday when they increased the rate by 50 BASIS POINTS.

What will come first - lower inflation or an economic recession in the UK? 👀

Trade Of The Day 📈

EURUSD

Tuesday News

Whether you’re planning to trade New York open or Sydney close, there’s something on the books for you tomorrow. 📲

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

• 08:30 — These orders aren’t looking so durable 🤨

  • Event: USA: Durable Goods Orders(May), Nondefense Capital Goods Orders ex Aircraft(May)

  • Major pairs to watch: EURUSD
    

• 08:30 — Oh Canada! 🎶 Prices finally going down (maybe).

  • Event: Canada: BoC Consumer Price Index Core (YoY)(May) Major pairs to watch: USDCAD
    

• 21:30 — More bang for your buck in Australia 🇦🇺

  • Event: Australia: Monthly Consumer Price Index (YoY)(May)

  • Major pairs to watch: AUDUSD, NZDUSD

These orders aren’t looking so durable 🤨

Looks like it’s that time of the month again.

No, I’m not talking about tampons and chocolate bars. 🙄

We’re talking durable goods orders in the USA.

In case you missed it the last time we broke it down, here’s what you need to know.

Durable goods orders will show us how much consumers in the US are spending on big ticket items that last for three or more years.

Basically, how many trips people are making to IKEA. 🛋

Y’all ever tried to put their furniture together at home? Last time I did, it ended up something like this:

The nondefense capital orders will show us what the government is spending on the same kind of stuff.

Except they’re not buying new couches, instead they’re spending money on things like construction trucks, mining equipment, and commercial ships. 🛳

It excludes things like tanks or missiles, hence the ‘nondefense’.

These orders are important because they’re pricey and make a big impact on the US economy. 🤑

That impact in May?

Apparently, not great.

A 1% decrease is expected in the consumer durable goods department and no change in the capital goods orders.

Expect EURUSD ↑

Oh Canada! 🎶 Prices finally going down (maybe).

The Bank of Canada (BoC) will hit us with the annual CPI Core tomorrow for the month of May. 🇨🇦

This is super important when we’re measuring inflation here in Canada.

What’s the ‘core’ all about?

This CPI value won’t include certain items because their prices changes too much and makes the number less accurate. 👌🏼

These things include:

• fruits

• vegetables

• gas

• fuel oil

• natural gas

• mortgage interest

• intercity transportation

• and tobacco products

This way we can see what Canadians are paying for goods and services over time and how much the cost of living has changed since last year. 🏷

And by the looks of tomorrow’s forecast, Canadian might be able to start enjoying life’s luxuries sooner than later.

From 4.1% to 3.7%.

Expect USDCAD ↓

Prices are on their way down. FINALLY. 🙏🏼

More bang for your buck in Australia 🇦🇺

It looks like Australia might feel some relief too. 😮‍💨

The RBA is releasing their annual CPI figures and the consensus is a drop from 6.8% seen in April to 6.1% in May.

Expect AUDUSD ↑

Why does the dollar value go up if inflation goes down?

If inflation is high, it means that the prices of goods and services are going up.

An apple that used to cost $1 last year might be $3 now. 🍎

That means last year $5 could buy you 5 apples. Enough to make a pie. 🥧

This year? Only one with some change to spare in your pocket. Barely enough to tie you over until lunch.

High inflation means each dollar gets you less than it did before. Resulting in a decrease in the value of the dollar. 👇🏼

So when inflation starts to go down, and your money can buy you more, the value of your dollar goes up. 👆🏼

Grow with Tradezie

Do you have a cool trading software to promote? Or maybe you represent a growing business in the Forex industry?

Expose your brand to over 1200+ traders who are always looking for an edge.

Get in touch.

Technical Tip

Time frame tips ⏰

1. When looking at multiple time frames, start with a top down approach: start on higher time frames and work your way down.

2. Use the daily tf to spot the overall trend, 4HR to mark zones, 15M to determine entry points and 5M for confirmation candles.

3. Higher time frames will always give more reliable forms of structure.

4. Be consistent with whatever time frame you choose.