MacroLab

Bitcoin has dropped below 📉 $55,000 for the first time since February. In the last 24 hours, the total liquidations in the crypto market amounted to $650.46 million 💵. The largest single liquidation order was valued at $18.48 million

The US Dollar weakened📉 as Jerome Powell's cautious disinflation remarks tempered market optimism. Despite strong JOLTS data, Powell hinted at a slow inflation decline, suggesting a measured Fed approach. Investors now await Friday's Nonfarm Payrolls📑 report for further insights.

Bitcoin traders netted over $12.3 billion in profits last month 💵. This profit surge comes ahead of key US economic events, including a Federal Reserve speech on July 2. Despite significant profit-taking, Bitcoin continues to rally 📈, trading at $63,270 amidst German Government BTC transfers and upcoming Mt.Gox creditor paybacks.

As we approach the second half of 2024, three critical questions emerge for investors: 1. Will cooling US economic growth📈 drag down risk assets? 2. Does the narrow market performance💹 hint at a looming correction? 3. And how should we adjust asset allocation with the US election on the horizon? Check out UBS' latest report 📑for insights and strategies to stay ahead.

The Federal Reserve is losing over $1 billion weekly due to high-interest 📈 payments and reduced earnings on assets, resulting in a $176.4 billion deficit since September 2022. These losses increase the federal budget deficit because the Fed cannot remit profits 💸 to the U.S. Treasury, ultimately burdening taxpayers through higher taxes or inflation.

The Japanese yen fell 📉 past 160 against the U.S. dollar on Wednesday, its weakest since late April. The U.S. dollar traded at 160.05 yen amid expectations of a wide interest rate gap between Japan and the U.S. On April 29, the dollar briefly hit 160.24 yen, prompting a 9.8 trillion yen (61.64 billion dollars) intervention by the Japanese government and the Bank of Japan 🏦 to stabilize the currency.

Expect robust global growth with shifting regional contributions and resilient inflation that central banks 🏦 may tolerate slightly above targets. Interest rates📈 will decrease modestly but remain higher than pre-pandemic levels. In equities, diversify beyond recent winners due to a broadening economic backdrop. For bonds, expect healthier coupons to drive returns in a higher-for-longer interest rate environment.

US core inflation drops to a 33-month low 📉, driven by deceleration in core services and stable rents. The UK labour market shows mixed signals with rising unemployment and steady wage growth 📊. Read the full report for detailed insights and implications.

In order for an economic indicator to have predictive value for investors and traders, it must be current, it must be forward-looking, and it must discount current values according to future expectations.

Consumers continue to grapple with high prices despite disinflation progress. US equities rose, oil🛢 and gold prices increased, and bond yields fell, indicating possible rate cuts. The US dollar strengthened, while political shifts in Europe, including a French snap election, impacted markets. Find out more in the full report for detailed insights on these trends📈.