Eurozone: growth is robust but it’s no longer a surprise

BNP Paribas Team BNP Paribas

Most activity and sentiment indicators continue to be above the long term average, which is a reflection of the robust growth environment. However most indicators have been in line with expectations: analysts have caught up with reality. This does not mean that a slowdown is around the corner, it just suggests that it will be increasingly difficult to be positively surprised.

Download The Full Ecoflash

Author

BNP Paribas Team

BNP Paribas

BNP Paribas Economic Research Department is a worldwide function, part of Corporate and Investment Banking, at the service of both the Bank and its customers.

EUR/USD retreats toward 1.1500 despite ECB rate hike

EUR/USD stays under bearish pressure and declines toward 1.1500 in the American session on Thursday. Although the European Central Bank raised key rates by 25 bps after the June meeting, the pair struggles to hold its ground as US President Donald Trump's renewed threat to hit Iran weighs on sentiment and supports the US Dollar.

GBP/USD extends slide below 1.3350 on renewed USD demand

GBP/USD is falling below the 1.3350 level in the American session on Thursday. Increased hawkish Fed bets and looming Mideast geopolitical risks sponsor the latest leg up in the US Dollar, particularly after the Producer Price Index jumped to 6.5% YoY in May.

Gold jumps above $4,200 on war-relief headlines

Gold surged to fresh intraday highs above $4,200 late in the American afternoon, after US President Donald Trump announced he canceled strikes over Iran, adding an agreement is in its "final stages."

Crypto Today: Bitcoin, Ethereum, XRP rebound broadens despite continued US-Iran strikes

Bitcoin steadies its recovery on Thursday, edging higher toward $63,000 despite incessant capital outflows. Meanwhile, altcoins, including Ethereum and Ripple, exhibit subtle rebound signs, trading above $1,650 and $1.12, respectively.

Indonesia surprise rate hike may not be enough to save the Rupiah

The surprise rate hike from Bank Indonesia, aimed at protecting the Indonesian Rupiah from sliding further, seems to have worked for now. The rate increase definitely helps, but there’s more work to do if Jakarta wants to ease investors’ concerns for good.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.