This first week of June 2024 has been eventful. The European Central Bank cut interest rates for the first time since 2019, citing persistent inflation. GameStop stock soared 47% after "Roaring Kitty" announced a livestream. Meanwhile, oil prices dropped amid an unexpected OPEC+ supply plan, and the Pound Sterling eyed 1.2800 against the US Dollar.
Read our full weekly review to dive into the current economic landscape and stay informed!


European Central Bank cuts interest rates for the first time since 2019
In a widely anticipated move, the European Central Bank confirmed on Thursday a reduction in interest rates, despite persistent inflationary pressures within the 20-nation eurozone.
The central bank lowered its key rate to 3.75%, down from a record 4% where it had remained since September 2023.
In its revised macroeconomic projections, ECB staff increased the annual average headline inflation forecast for 2024 to 2.5%, up from the previous 2.3%. This adjustment will be closely analysed by investors.
Following the rate cut decision, the EUR/USD is trading close to 1.0900, benefiting from a risk-on market environment.
Trading involves significant risk of loss.

GameStop soars 47% as 'Roaring Kitty' plans livestream
GameStop stock soared 47% after a YouTube account, believed to be linked to investor Keith Gill, aka "Roaring Kitty," announced a livestream for Friday at noon ET.
Following the market close, Reddit user DeepF***ingValue, also tied to Gill, shared a screenshot showing their portfolio swelling to $586 million, which includes GameStop stock holdings and unexercised options.
Earlier this week, the same user revealed a $175 million purchase in GameStop, now valued at around $210 million. This disclosure further fueled the stock's rise.
Trading involves significant risk of loss.

Oil drops amid OPEC+ supply plan
Oil prices are on track for a weekly decline after OPEC+ unveiled an unexpected plan to increase supply this year, shaking market stability.
Brent futures, which saw a 1.9% rise on Thursday, are trading near $80 a barrel but are still headed for their third consecutive weekly drop. West Texas Intermediate is below $76, also set for a weekly loss.
The OPEC+ supply plan has elicited mixed reactions from Wall Street. JPMorgan Chase & Co. expressed skepticism about its bearish impact due to many members already exceeding their quotas, while Citigroup Inc. predicts that the full cuts will be maintained into next year.
Trading involves significant risk of loss.

Pound sterling eyes 1.2800
The Pound Sterling tested 1.2800 against the US Dollar this week, hitting a new two-month high before sellers regained control.
Kicking off the week with a bullish trend, GBP/USD extended its previous rebound amid thin trading due to US and UK market holidays on Monday. The Pound capitalized on strong UK inflation data, reigniting expectations of a delayed policy pivot by the Bank of England (BoE).
Concurrently, the US Dollar weakened as risk sentiment improved following positive economic measures from China aimed at boosting its property and semiconductor sectors.
Despite reaching a new two-month high of 1.2800, the Pound Sterling faced renewed selling pressure. Increased safe-haven demand and hawkish comments from Minneapolis Federal Reserve President Neel Kashkari bolstered the US Dollar.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋