JASPER’S MARKET SQUAWK 28-06-2023

US Economic Data Reverse Risk Appetite

The dollar retreated on Tuesday on the back of resilient economic data supporting risk appetite. Euro rose, assisted by ECB hawks.

Chart: EURUSD

Dollar retreats as resilient economic data supports risk appetite, boosting the euro. Gold falls after upbeat US data weakens safe-haven appeal, exposing $1890/oz. Euro strengthens as ECB President’s hawkish remarks lift sentiment.

How this will affect me personally

As a consumer, a stronger euro may impact the cost of imported goods, potentially leading to higher prices. However, a weakening dollar could make foreign travel more affordable. Overall, the impact on individuals will depend on their specific financial circumstances and how they are affected by currency fluctuations.

How this will affect the world

The exchange rate between the euro and the dollar plays a significant role in global trade and financial markets. A stronger euro can make European exports more expensive, potentially impacting global trade flows. Meanwhile, a weaker dollar may benefit emerging markets that rely on exports to the US. The overall impact on the world will depend on how these currency movements translate into broader economic trends.

Conclusion

The interplay between US economic data, currency movements, and global risk appetite continues to shape the financial markets. As investors navigate these uncertainties, staying informed and adapting to changing market conditions will be crucial for managing personal finances and understanding the broader implications for the world economy.