SHANGHAI, Jun 25 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar continued to decline against a basket of major currencies as investors remained cautious about the greenback in face of potential interest rate cuts by the US Federal Reserve.
The dollar index, which measures the greenback against six major currencies, dipped to the lowest since March 21 at 95.957, and closed 0.24% lower on the day, at 95.985.
President Trump took to Twitter on Monday to slam the Federal Reserve for leaving interest rates unchanged. The Fed at its last meeting kept its benchmark rate in a range of 2.25% to 2.5% but hinted at future cuts.
Investors and traders believed that the Fed cutting interest rates would become a certainty in July, as the probabilities of a "ease" in the Fed's interest rates remained 100% on Monday, according to the CME Group's FedWatch tool.
LME base metals increased across the board as zinc jumped 2.3%, aluminium rose 1.8%, nickel gained 0.6%, tin grew 0.4%, lead went up 0.3%, and copper nudged up. SHFE zinc advanced 1.8%, lead gained 1.1%, aluminium expanded 0.7%, nickel increased 0.4%, tin edged higher, while copper fell slightly.
German business confidence fell to a near five-year low as expectations across managers for the coming six months, deteriorated.
The Ifo institute said on Monday that its monthly confidence index slipped to 97.4 points in June from 97.9 last month, in line with market expectations.
The third straight monthly decline takes the index to its lowest since November 2014 and was entirely due to managers’ waning views of future prospects.
In the US, the Fed’s Redbook Index and the speech by New York Federal Reserve president John Williams will be available today.
The US will also release data on its home price index by the Federal Housing Finance Agency (FHFA) for April, its new home sales for May, the Conference Board consumer confidence index for June, and the weekly crude oil inventory by the American Petroleum Institute (API).