wage growth

Euro steadies as markets eye Eurozone, US inflation data

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Euro steadies as markets eye Eurozone, US inflation data

The EURUSD pair is trading around 1.0850 in a tight range. ECB policymakers are hesitant to commit to further rate cuts beyond June due to concerns about reviving price pressures. Traders have lowered expectations of three rate cuts to two this year. Higher wage growth is leading to increased consumer spending and inflationary pressures. Germany’s Ifo Business Climate data for May missed estimates, with the Business Climate Index, Current Economic Assessment Index, and Expectations Index all falling short of expectations.

Bank of England to cut rates in August but June a very close call

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Bank of England to cut rates in August but June a very close call

The Bank of England is expected to start bringing down interest rates in August, with a majority of economists predicting a rate cut next month.

Dollar tumbles on soft inflation, weak retail sales

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Dollar tumbles on soft inflation, weak retail sales

The EURUSD pair reached a monthly high near 1.0870 as the US Consumer Price Index eased and Retail Sales remained stagnant in April.

UK employers plan 4 per cent pay rises in coming year

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UK employers plan 4 per cent pay rises in coming year

British employers expect to raise wages by 4 per cent over the coming 12 months, according to a survey by the Chartered Institute of Personnel and Development.

Sterling rises after UK economy beats expectations and exits recession

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Sterling rises after UK economy beats expectations and exits recession

The British economy grew by 0.6 per cent in the first quarter of the year, beating expectations and leaving behind a mild recession in 2023.

Bank of England moves closer to first rate cut since 2020

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Bank of England moves closer to first rate cut since 2020

The Bank of England’s Monetary Policy Committee voted 7-2 to keep interest rates at 5.25 per cent, with Deputy Governor Dave Ramsden and Swati Dhingra voting for a cut to 5 per cent. The BoE hinted at a potential rate cut in June and emphasized the importance of upcoming economic data releases. Governor Andrew Bailey expressed optimism about the direction of inflation.

GBPUSD rises on dovish Fed sentiment

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GBPUSD rises on dovish Fed sentiment

The GBPUSD pair is trading around 1.2550 in Asian markets on Monday, with the Sterling-Dollar appreciation attributed to recalibrated expectations for Federal Reserve interest rate cuts in 2024 following lower-than-expected US jobs data. The US economy added 175,000 jobs in April, signaling a slowdown from the previous month. The Fed is now expected to enact its initial rate cut in September, while the Bank of England is expected to maintain rates unchanged at 5.25% during Thursday’s meeting. Investor sentiment regarding interest rate cuts by the BoE has been postponed to September due to concerns about robust wage growth in the UK. BoE Governor Andrew Bailey expressed optimism about meeting the 2% inflation target.

USD weakens on poor NFP data, slower wage growth

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USD weakens on poor NFP data, slower wage growth

The USD weakened on Friday as the U.S. Bureau of Labor Statistics reported weak labor demand and slowing wage growth in April.

Euro gives up gains ahead of US, Eurozone data

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Euro gives up gains ahead of US, Eurozone data

The EURUSD pair is struggling to hold above the round-level resistance of 1.0700 in European trading as investors await key economic indicators in the Eurozone, including preliminary Q1 GDP and CPI data. ECB policymakers have differing opinions on interest rate cuts, with some expecting cuts to start in June and potentially continue at a pragmatic pace, while others are concerned about higher service inflation and are not convinced that inflation will return to target in a timely manner. In Monday’s session, investors focused on German preliminary inflation data for April.

Democrats Should Stop Pushing a Higher Corporate Tax Rate

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Democrats Should Stop Pushing a Higher Corporate Tax Rate

President Biden and Senator Bernie Sanders are advocating for raising the corporate tax rate to help working families, but economic research shows that this would actually harm working people. Studies have shown that a higher corporate tax rate leads to lower wages, higher prices, and reduced retirement savings for everyday Americans. The 2017 tax cuts resulted in benefits for working people, including lower unemployment rates and increased wages. Increasing the corporate tax rate would also lead to higher taxes on pensions and retirement savings for many Americans. Experts agree that raising the corporate tax rate is the most economically harmful tax increase, hurting investment, growth, productivity, workers, consumers, and savers.