Market in Flux as Fed's Rate Vision Blurs

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GM and BRRR.

Soft US economic data is here to remind us that the Federal Reserve might just ditch the idea of raising interest rates. New orders slowed, unemployment is up, and now the markets give an 82% chance at a rate-pause versus 36% last week. These winds change direction fast.

Zooming out to world market trends, retail sales growth in the UK has hit a speed bump among their high food prices. Even the Reserve Bank of Australia has taken the stage with a rate hike announcement, hinting that more hikes might be on the horizon to tackle that pesky inflation. Following the Saudi’s cuts on production lowering crude prices, it seems like the financial world is taking a deep breath.

More on crypto news, Binance remains embroiled in a whirlwind of controversy. After yesterday’s announcement of SEC lawsuits, significant funds exited their exchange. Their legal tussle also had a noticeable impact on cryptocurrency prices, with Bitcoin, ETH, and other digital assets experiencing significant fluctuations.

Here’s what we’ve BRRR’d:

• Fed's Rate Hike Vision Blurs, Market Sentiment in Flux

• Bitcoin Takes a Tumble as Binance Faces SEC Wrath: Crypto Rollercoaster Continues

Fed's Rate Hike Vision Blurs, Market Sentiment in Flux

• Mixed Euro stocks on soft US data: The pan-European STOXX 600 index rose slightly by 0.1% to 460.40, while Germany's DAX remained flat and London's FTSE dipped 0.3%. Soft US economic data reinforced expectations that the Federal Reserve may skip an interest rate hike in its upcoming meeting.

• UK retail sales slow with rising food prices: British retail sales growth reached a seven-month low in May as shoppers reduced spending on non-essential items, attributed to high food prices. The British Retail Consortium reported the decline in sales.

• RBA raises rates: The Reserve Bank of Australia (RBA) increased interest rates and warned of potential additional hikes to achieve inflation targets. The RBA's decision sets the stage for upcoming monetary policy decisions by major central banks globally.

• Fed to hold as US services weaken: Markets indicate an 82% probability of the Federal Reserve maintaining rates, a significant increase from 36% a week earlier. US services sector growth was sluggish in May, with new orders slowing and input prices reaching a three-year low.

• Oil drops on Saudi cuts: Brent crude and US Crude dropped approximately 2% to $75.17 and $70.58, respectively, after Saudi Arabia announced additional production reductions. The move by the world's top oil exporter led to a reversal in oil prices.

  Reuters

Bitcoin Takes a Tumble as Binance Faces SEC Wrath: Crypto Rollercoaster Continues

• Investors withdraw $790M after SEC lawsuit: In the past 24 hours, investors pulled approximately $778.6 million in crypto tokens from Binance and $13 million from its U.S. affiliate, Binance.US, after the SEC filed a lawsuit against both exchanges.

• SEC alleges deceptive practices: The SEC has accused Binance of a "web of deception" involving 13 charges, including artificial inflation of trading volumes, diversion of customer funds, failure to restrict US customers, and misleading investors about market surveillance controls.

• Crypto hits a speed bump: Bitcoin, the largest cryptocurrency, fell over 5% following the SEC lawsuit, marking its worst daily decline since April 19. Binance's BNB cryptocurrency also plunged 9.2% on Monday, reaching a near three-month low of $277.

• Lawsuit adds to Binance's troubles: The SEC lawsuit is the latest in a series of legal challenges for Binance. Previously, the company faced a lawsuit from the CFTC in March, alleging an "illegal" exchange and inadequate compliance measures.

• Binance on defense: Binance has stated its cooperation with the SEC's probes and its determination to defend its platform robustly. The exchange has worked to address the SEC's concerns and attempted to reach a negotiated settlement.

  CNBC

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