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ForexPeaceArmy.com

Analysis of hot economical, political global events, rumors and humor
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☝️☢️🗣 - 🇺🇸Biden and Speaker of the House McCarthy reached a final agreement on raising the national debt limit, sending it to Congress - press conference of the President of the United States

▪️ Biden: This deal is great news for the American people
▪️ We urged both Houses to pass the agreement.
▪️ The agreement excludes the worst-case scenario - default.
▪️ We didn't compromise on the debt ceiling, but we did compromise on the budget.
▪️ Biden says McCarthy negotiated with him in good faith and kept his word
▪️ Biden-McCarthy deal also provides judicial review protection and expires in 2 years - document

The bill is expected to be passed on Wednesday.

By 2033, the national debt of the United States will reach $50 trillion.
☝️☢️🗣 - 🇺🇸This is how we know Speaker Kevin McCarthy lost big and Joe Biden won.

None of the old corporate left media criticizes the debt ceiling deal. Lots of cute stories about the State Debt. Zero scary headlines.😁🔥
☝️☢️🗣 - 🇺🇸Even before this debt ceiling deal, Janet Yellen testified that they expect debt to reach $50 trillion by 2033. $2 trillion a year deficit

Now, after this "deal" with the removal of all restrictions ... probably MUCH earlier. $40 trillion debt by 2026 $50 trillion debt by 2029 Buy hard assets that will have value in the next currency because they destroy this one.🤓
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🇯🇵☢️👆 Speculators increased their short yen positions to the highest in a year

✔️This is due to both the recent collapse of the Japanese currency and the expectation of an increase in Fed rates.

✔️Recall that the USDJPY rate has an extremely high correlation with the dynamics of Treasury yields.

✔️According to the Commodity Futures Trading Commission in the week ending May 23, hedge funds increased their shorts by 10,986 contracts to 53,706, the highest since last June.

✔️In May, the yen shows the third worst performance among peers in the G10 against the stronger dollar.
⚡️🇺🇸☢️👆Data on the US labor market can inspire optimism only for officials from the Fed.

American employers are gradually reducing the rate of hiring.

✔️Upcoming data is forecast to show jobs in the world's largest economy increased by less than 200,000 in May, compared to an average monthly job growth of about 370,000 over the past year.

❗️In addition, the report will show the lowest number of open vacancies in two years. While job openings are still about 2 million more than before the pandemic, April's fourth consecutive monthly drop in job openings underscores the gradual deterioration of labor market conditions that fueled inflation last year.
⚡️☢️🔥🇨🇳Bitcoin is raising on news from Hong Kong

Hong Kong is expected to announce that as early as June, retail investors can trade cryptocurrencies in accordance with new rules for the digital asset industry. -
Bloomberg
⚡️🇺🇸🇬🇧☢️🗣Barclays:

The minutes from the May meeting turned out to be more "hawkish" than expected. "Several participants noted that additional tightening at the upcoming meetings would be appropriate..." - the protocol says. We expect the Fed to raise its forecast for economic growth, inflation and lower its forecast for unemployment growth. This could lead to an increase in the final rate forecast, even if the Fed does not raise it in June.

source: Barclays Research, 05/24/2023
⚡️🇺🇸☢️👆 Everything, concerning Debt ceil agreement in this post...
⚡️🇺🇸☢️👆Fed's Loretta Mester:
(31.05.2023)

Arguments in favor of raising the rate at the moment are stronger than in favor of holding it
Rate decision could still be affected by NFP and next inflation report
Debt ceiling agreement will remove much of the uncertainty

source: forexlive.com
☝️☢️🗣 - 🇺🇸Today, the House of Representatives will vote on the US National Debt at 20:30 Central European time.

🔊Steve Bannon: If McCarthy's bill fails to win 218 Republican votes and he has to rely on Democrats to pass it, then the G20 should relieve McCarthy of his position as Speaker

🔊Rep.
Matt Goetz said on Tuesday that passing the debt deal without a Republican majority in the House would trigger Speaker Kevin McCarthy's "immediate" resignation proposal.

"If a majority of Republicans oppose the bill and you use Democrats to pass it, that would immediately be a black violation of the agreement we made with McCarthy to allow his ascension to the Speakership, and that would likely trigger an immediate plea for release," he said. Gaetz Newsmax.
⚡️☢️-🇨🇳The Chinese economy is facing with gloomy prospects amid a downturn in the manufacturing industry. Bloomberg

▪️ The PMI survey indicates a deeper contraction in the manufacturing industry.

▪️There are calls to increase the Central Bank's incentives to stimulate growth.
⚡️🇺🇸☢️-👆 It seems the party begins...
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🔊 Few seconds of humor, just to relax a bit.

Babies - world leaders. (this is not leaders in childhood :)
🔥👍
⚡️🇺🇸☢️🗣🏦🇺🇸 The bill to raise the US national debt ceiling was passed by a large part of the congressmen of the House of Representatives .

Now the bill will be sent to the US Senate, which must pass it and submit the document for signature to US President Joe Biden no later than June 5, when the authorities are expected to run out of funds to service the public debt
🏦🇺🇸 US economic activity appears to have slowed down in recent weeks, a Fed report released on Wednesday showed that job growth and inflation have slowed and the immediate business outlook looks slightly worse than before.

"Expectations about future growth have slightly worsened, although the interlocutors still generally expected further expansion of activity," says the latest collection of surveys and interviews "Beige Book" conducted in 12 districts of the US Central Bank until May 22.
⚡️☢️-🇺🇸 SENATE REPUBLICAN LEADER MCCONNELL: I EXPECT THE DEBT CEILING BILL TO PASS THE HOUSE OF REPRESENTATIVES AND GO TO THE SENATE THURSDAY.

✔️Biden is also sure that everything will go well and he will sign by the 5th.

✔️By the way, the CDS on the US government debt collapsed, so the market no longer believes in default. Investors switch attention to coming Fed meeting.🔥
👑🗓📈 Pimco: gold is now overpriced

👌 But in the long term (25 years), the precious metal is more than okay.
This is due to the notorious de-dollarization, but, of course, this taboo word is not pronounced at Pimco. They say "diversifying the assets of the world's largest central banks."

📝Right now, Pimco advises to shift from gold to inflation-linked government bonds
, that is, to the so-called TIPs. The company's experts believe that due to "sticky" inflation, the Fed will not be able to move to a cycle of stable monetary policy easing for a long time.

♻️Also, Pimco introduced the concept of “greenflation”, that is, “green” inflation . The entire Western world is now trying to switch (or at least pretends to be) to renewable energy sources, regardless of the costs. This becomes an additional significant factor in price growth.
🏦🇪🇺ECB's Lagarde sees no clear signs that core inflation has peaked, promising further increases in borrowing costs.

▪️According to her, there is still work to be done on the issue of interest rates.
▪️The remarks followed data indicating that inflation in the eurozone fell in May
⚡️-🔥👆In Sudan, the army bombed the central bank's printing press to prevent the government from printing money.

This is what I mean by radical measures to combat inflation.
👍😁
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⚡️🇺🇸☢️🗣Change in US nonfarm payrolls

🧮Factual 339,000
(expectations 190,000, previous figure 294,000)

✍️ The US economy unexpectedly added 339K jobs in May 2023 , well above market forecasts of 190K, and after an upward revision of 294K in April.

👥 Job gains occurred in professional and business services, government, healthcare, construction, transportation and warehousing , and social assistance.