Economic Report on 26 June 2024

Global Economic Update - June 26, 2024

United States

The US economy continues to show resilience despite elevated interest rates. Q1 GDP was revised up to 1.4% annualized growth, beating expectations. Consumer spending remains robust, though showing signs of moderation.

Key Metrics:

• GDP Growth: 1.4% (Q1 2024)
• Inflation (CPI): 3.3% YoY
• Unemployment: 4.0%
• Fed Funds Rate: 5.25-5.50%

European Union

The ECB cut rates for the first time since 2019, reducing the deposit rate by 25 basis points to 3.75%. Inflation continues to trend lower, approaching the 2% target.

Key Metrics:

• GDP Growth: 0.3% (Q1 2024)
• Inflation: 2.6% YoY
• Unemployment: 6.4%
• ECB Deposit Rate: 3.75%

Asia-Pacific

China's economy shows mixed signals with manufacturing PMI improving but property sector concerns persisting. Japan maintains ultra-loose monetary policy despite yen weakness.

Key Developments:

• China PMI: 51.7 (expansion)
• Japan Core CPI: 2.5% YoY
• RBA holds rates at 4.35%

Forex Market Implications

1. EUR/USD: Bearish bias on policy divergence

2. GBP/USD: Range-bound ahead of UK election

3. USD/JPY: Bullish with intervention risks above 160

4. Gold: Supportive environment on rate cut expectations

Week Ahead

Watch for US PCE inflation data on Friday, which could influence Fed policy expectations for the September meeting.

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*This article was originally published on GoFX.com. The content has been adapted for our platform.*