Weekly news summary for June 11 to 17, 2021
Friday, June 11, 2021: European Economy Shows Signs of Recovery
The European economy showed signs of rebounding from the impact of the COVID-19 pandemic, as the UK’s gross domestic product (GDP) growth accelerating in April to 2.3% month-over-month, its fastest increase since July.
Germany’s economy is also recovering from its pandemic-driven decline, with the Bundesbank raising its GDP outlook to 3.7% this year, 5.2% in 2022, and 1.7% in 2023, while it also pushed inflation forecasts up but minimized the importance of the surge due mainly to energy prices and tax impacts.
Monday, June 14, 2021: Oil Prices Trade Close to Multi-year Highs
Oil prices advanced on Monday to trade close to multi-year highs, finding support in a better demand outlook as more COVID-19 vaccinations drive global travel near normalcy.
The US West Texas Intermediate (WTI) crude oil futures were up 0.8% to $71.47 per barrel, marking its highest since October 2018, while Brent crude oil futures added 1% to $73.38 per barrel, about its peak since May 2019.
Tuesday, June 15, 2021: Bitcoin Climbs Past $40,000
Bitcoin climbed past the $40,000 mark for the first time since last month, as Tesla chief executive Elon Musk said the company could start accepting the cryptocurrency as payment once again in the future.
The world’s largest cryptocurrency by market capitalization rose 3% to $40,182.00, recovering and leaving its recent range after falling from a record high of nearly $65,000 in April.
Wednesday, June 16, 2021: UK Inflation Rises Past BoE’s 2.0% Target in May
UK inflation grew past the Bank of England’s (BoE) 2.0% target to 2.1% in May and is expected to increase to 2.5% by the end of 2021, as the country re-opens after COVID-19 lockdowns and global oil prices edged higher.
Still, the Office for National Statistics (ONS) reported that the UK’s consumer price index (CPI) was up 2.0% in the twelve months to May, with BoE Governor Andrew Bailey and most colleagues saying the inflation rise will be short-lived and cutting the large stimulus programs won’t be needed.
Thursday, June 17, 2021: Dollar Hits Two-month High on Fed’s Hawkish Tone
The US dollar reached a two-month high on Thursday after the Federal Reserve took a hawkish turn, signaling a much earlier increase in interest rates, with at least two rate hikes expected in 2023.
The dollar index climbed as high as $91.484 for the first since April 19, having gained 1% overnight to register its largest surge since March 2020, while the Fed’s move also supported the 10-year US Treasury bond yields, climbing to its highest since early March.
