Welcome to our regular Monday recap of what happened in the last trading week, which brought a number of interesting things.
In the middle of the week came the latest UK GDP data. The UK economy unexpectedly grew by 0.5% month-on-month in May 2022, recovering from a 0.2% contraction in April and beating market estimates.
On Thursday we could see an interesting "natural phenomenon" on the EUR/USD currency pair, where a currency parity was created, i.e. 1 EUR = 1 USD. This parity last occurred in December 2002.
The Bank of Canada surprised the markets on Wednesday by raising its key interest rate by one percentage point (100 bp).
HINT: the full statement can be found here:
The Reserve Bank of New Zealand also raised rates on Wednesday by 50 basis points, as expected.
And what's in store for the current trading week?
The Bank of Japan will meet at 5:00 on Thursday to decide on the current monetary policy settings.
The European Central Bank will also meet on the same day at 14:15, where we expect a 25 basis point rate hike.