Numerous economic indicators have shown that the United States (US) economy is gradually slowing down. and Copper, Zinc Price open lower. The United States core inflation rate will, however, continue to be relatively high over the medium and long terms. Showing that monetary policy has been effective but with a lag.
The possibility of an economic recession in the United States continues to worry the market.
The Federal Reserve maintain its hawkish stance previous week. Claiming that bank liquidity worries are exaggerate and that a recession in the United States economy is unlikely to occur in the 2nd half of the year.
Although the gdp & inflation continued to cool off, they did not do so as quickly as the market anticipated.
The Federal Reserve’s first Beige Book after the banking collapse indicated that the economy’s cooling was still less than market forecasts. As a result, the likelihood of a 25 bps increase in the United States dollar rate in May shot up to 88 percent.
The United States currency strengthened, pushing down copper, zinc prices.
It is important to note that the monthly US jobs and real estate data have continued to show that. The United States economy is progressively cooling down, showing that monetary policy has had some success, however slowly, and that the market was still concerned about a possible recession.
The UK’s Consumer Price Index increased 10.1 percent year over year in the eurozone in March, surpassing 10 percent for 7 straight months. This fuelled market fears about the rising inflation in the UK, together with the British employees’ robust wage rise that was disclosed throughout the week.