Weekly news summary for May 27 to June 2
Friday, May 27: Ethereum Extends Decline on PoS Transition Delay
Ethereum extended losses on Friday as traders expressed disappointment over the constant delays to its planned proof-of-stake (PoS) system shift, which is expected to further its transaction volumes and scalability.
The second-largest cryptocurrency hit a 14-month low of $1,718 after Ethereum co-founder Vitalik Buterin said the transition may last until August, although the crypto regained some of the losses to trade at $1,774 later in the session.
Monday, May 30: Luna 2.0 Loses 75% of its Value After Launch
Following its $40 billion crash, Terra’s relaunch of the fallen Luna cryptocurrency on major exchanges started on a poor note after the token saw its value decline 75%.
Data from CoinMarketCap showed the new version of the Luna fell as much as $4.39 after rising to a record of $19.53 on Saturday and has since traded around the price of $5.90.
Tuesday, May 31: Eurozone Inflation Rises to New Record High in May
The eurozone’s inflation rate in May soared to its highest since the euro currency was created in 1999 due to increasing food and energy costs, putting more pressure on the European Central Bank (ECB) to be quicker with leaving its ultra-loose monetary policy.
Eurozone consumer price index (CPI) was up 8.1% from April’s 7.7% last month, a new record high for the seventh month in a row, while the bloc’s core CPI that excludes energy and food prices also increased to 3.8% from 3.5% in May.
Wednesday, June 1: European Manufacturing Activity Slides in May
Manufacturing activity in Europe lost momentum to hit its slowest since early 2021 in May, as higher energy prices, supply chain hurdles in China, and less optimism due to the war in Ukraine weighed on the sector’s growth.
The S&P Global’s Eurozone manufacturing purchasing managers’ index (PMI) dropped to 54.6 in the previous month, its lowest level since December 2020, while the UK’s May PMI of 54.6 marked its lowest since February 2021, with new export orders falling for the eighth month contributing to the decline.
Thursday, June 2: US Dollar Extend Gains as Yields Hit 2-Week High
The dollar strengthened to a three-week high against the yen on Thursday and remained stable versus other major currencies, as the US 10-year Treasury yield reached a two-week high of 2.95% the previous day, fueling the currency.
The greenback extended Wednesday’s 1.1% surge by climbing as much as ¥130.23 to mark its highest since May 11, while the euro and the British pound traded at $1.07 and $1.25, respectively, whereas the US dollar index stood at $102.37.