This week’s economic data showed a mix of cooling inflation and slow-but-steady growth. In the US, the Fed’s preferred inflation measure – core PCE – rose just 0.2% in May, bringing the annual rate to 2.7%. That’s close to the Fed’s 2% target, supporting the idea that price pressures are easing. However, Americans are spending more cautiously: personal spending dipped for the second time this year, and consumer confidence fell sharply in June as worries about jobs and the economy grew. Jobless claims edged down slightly, suggesting the labour market is cooling gradually.

Ever wonder why the stock market reacts so strongly when someone from the US Federal Reserve speaks? Or why the value of the euro shifts after a decision from the European Central Bank (ECB)? That’s the power of central banks – institutions that might seem far removed from everyday life, but actually have a big say in how much we pay on our mortgages, how expensive groceries get, and whether the economy runs hot or cold.

Support zones act like the floor beneath a market – a price area where falling prices typically pause or reverse because buyers step in. Think of it as the point where traders say, “This looks cheap,” and start buying. These zones are crucial in technical analysis because when support breaks, it can signal that the underlying demand has weakened – and that often leads to a much bigger move.

The vibrant city of Limassol, Cyprus has once again hosted one of the biggest and most important events in the world of finance and fintech: the iFX Expo International 2025. With over 6,000 professionals and 1,600 companies gathering from around the world, the iFX Expo was a week of high-energy filled with fresh, innovative ideas, tech startups, and big announcements

Back in 2022, the US central bank – the Federal Reserve – began raising interest rates quickly to fight inflation. Rates went from nearly 0% to over 5% in just over a year. At first, this was great news for big American banks like JPMorgan, Bank of America, Citigroup, and Wells Fargo.

Last week’s macro backdrop showed cooling inflation but softening demand. US retail sales unexpectedly declined by 0.9% in May — the biggest drop in four months — hinting at consumers pulling back amid high rates and lingering price pressures. Other reports, like slower factory activity and a dip in homebuilder confidence, added to the sense that the US economy is losing a bit of steam. Jobless claims also stayed on the higher side, suggesting the job market isn’t as strong as it was earlier this year. On the bright side, inflation seems to be cooling off — consumer prices in May rose just 2.4% compared to last year, and core inflation (which excludes food and energy) came in at 2.8%. That’s a big improvement from the highs we saw over the past couple of years and gave the Fed enough breathing room to keep interest rates unchanged for now.

Last week, investors were navigating a delicate balance between relief and risk. On one hand, US inflation data brought some welcome news – prices are rising more slowly than expected, giving the Fed more reason to hit pause on rate hikes. The CPI Index rose just 2.4% from a year ago, while core inflation also cooled. At the same time, jobless claims ticked higher, hinting that the red-hot labour market might be losing a bit of steam.

Amid escalating tensions in the Middle East, gold prices surged while the U.S. dollar stumbled, highlighting a shift in global safe-haven preferences. Unlike past crises, investors appear to favor gold over traditional havens like U.S. debt.

On this basis, EC Markets is pleased to announce the launch of an innovative section entitled Scholar on its new website, designed to enhance the quality of information available by offering the public pioneering, interdisciplinary analysis of the fields underpinning what we call the economy.

President Trump harshly criticized Fed Chair Jerome Powell, calling him a “numbskull” for refusing to cut interest rates. Trump insists lowering rates by 2% could save the U.S. $600 billion annually.