Previous Trading Days Events 05.06.2024

The Bank of Canada trimmed its key policy rate on Wednesday, the first G7 country to do so. 

Lets just enjoy the moment for a bit, said Governor Tiff Macklem at a press conference after announcing the central bank had reduced rates to 4.75 from 5, the first cut in four years.

Macklem stressed the timing of the next cut would depend on whether inflation continued its downward trajectory.

U.S. inflation is stickier and markets expect the Federal Reserve will cut rates only once this year. 

The European Central Bank ECB is most likely to follow with a shift in policy as well.

Source httpswww.reuters.commarketsratesbondsbankcanadacutsratesfirsttimefouryears20240605

The U.S. services sector experienced growth in May after a shortlived contraction in the prior month, with a measure of business activity improving by the most in three years. These are signs that a tight labour market is easing back into balance but the whole picture is unclear as other data suggest cooling.

The overall economic output in the first quarter grew at the slowest rate in nearly two years.

Source httpswww.reuters.commarketsususservicessectorreboundsmay20240605

Winners vs Losers

Gold reached the top and recorded gains of 1.72 for this week. The CAD has depreciated heavily after the BOCs decision to cut interest rates causing pairs CAD as Quote to move to the upside. JPY has appreciated lately against other currencies pushing pairs JPY as quote to…