GBP/USD Approaches Key Resistance at 1.3285 as Fed Rate Decision and UK PMI Data Drive Market Direction

The British pound is currently testing a critical resistance level at 1.3285 against the US dollar, with traders closely watching two key catalysts: the upcoming Federal Reserve interest rate decision and the release of UK PMI data. Either event could trigger a breakout in price action. If GBP/USD manages to break above this level in the short term, there’s potential for an extended rally toward 1.3443, possibly even 1.36. Investors should stay alert to shifts in monetary policy and technical signals to seize timely market opportunities.

This Week’s FOMC Meeting Puts Interest Rates in Focus as Strong Jobs Data and Inflation Shift USD, EUR, and JPY Exchange Rates

This week, all eyes are on the U.S. Federal Reserve’s FOMC meeting, with markets closely watching for signals on the direction of interest rates. Despite signs of slowing economic growth, the labor market remains resilient, while inflationary pressures have yet to ease—making the Fed’s decision-making process more complex. Currency volatility is on the rise, with the U.S. dollar, euro, and Japanese yen all experiencing sharper swings. Investors should pay close attention to Chair Powell’s statements and any hints about future monetary policy moves.

Asia Stocks Rally as U.S.-China Trade Talks Resume and China Cuts Interest Rates, Boosting Market Confidence

High-level trade talks between the U.S. and China are set to resume, fueling optimism across global markets. At the same time, China has rolled out a series of interest rate cuts aimed at boosting economic momentum. These developments have sparked a strong rebound in Asian equities as investor confidence returns. Beyond easing tariff tensions, the upcoming negotiations could mark a pivotal moment with far-reaching implications for the global economic outlook.

Shanghai Gold Exchange Plans Vault in Hong Kong to Boost Yuan-Priced Gold Trading and “Shanghai Pricing, Hong Kong Delivery” Model

The Shanghai Gold Exchange has announced plans to establish an offshore gold vault in Hong Kong, marking a significant step forward in China’s effort to internationalize yuan-denominated gold. This move is set to strengthen Hong Kong’s role as a global hub for gold trading by improving the efficiency of physical gold delivery and capital flow. It also signals the beginning of a new “Shanghai pricing, Hong Kong delivery” model. As geopolitical tensions rise, gold priced in Chinese yuan is gaining traction among global investors, drawing increased attention in the market for its potential as a strategic asset.

PBOC Cuts SLF Rate to Boost Liquidity, Strengthens Support for Small Businesses and the Real Economy

The People’s Bank of China has cut the Standing Lending Facility (SLF) rate and injected additional liquidity into the financial system. This move is aimed at lowering borrowing costs and supporting the real economy, particularly small and medium-sized enterprises. Alongside the recent reductions in the reserve requirement ratio (RRR) and relending rates, these measures reflect a stronger policy commitment to stabilizing economic growth. Investors are closely watching how these easing policies will impact consumer spending and business investment in the coming months.

Global Oil Prices Plummet to Four-Year Low as OPEC+ Hike Hits Hong Kong Energy Stocks

**Oil Price Plunge Drags Down Hong Kong Energy Stocks**

Oil prices tumbled to a four-year low as OPEC+ unexpectedly ramped up production amid growing global economic uncertainty. Brent crude slipped toward the $60 per barrel mark, putting immediate pressure on major Hong Kong-listed energy stocks like CNOOC and PetroChina.

Investors are increasingly concerned about a widening imbalance between crude supply and demand, as well as escalating trade tensions, both of which could keep oil prices volatile and range-bound in the near term.

With energy markets facing heightened uncertainty, investors should closely monitor policy developments and be prepared to act quickly on potential shifts in the energy investment landscape.

U.S. Imposes 25% Tariff on Auto Parts: Global Supply Chain Disruption and How It Hits Hong Kong Auto Tech Stocks

The U.S. has imposed a 25% tariff on imported auto parts, sending shockwaves through the global automotive supply chain. This sudden move is expected to drive up vehicle prices for consumers while sharply increasing production costs for manufacturers. In response, companies like General Motors and Boeing are under intense market scrutiny as investors closely watch how industry leaders navigate the escalating trade tensions. The ripple effects are also being felt across the Hong Kong stock market, particularly in automotive and tech sectors. With shifting global trade dynamics, local investors should stay alert to upcoming policy changes and international economic developments.

U.S. Dollar Strengthens While Pound Struggles as Fed and Bank of England Diverge on Interest Rates

This week, markets are keeping a close eye on interest rate decisions from both the U.S. Federal Reserve and the Bank of England. The two central banks appear to be taking different paths—while the Fed remains cautious and signals a wait-and-see approach, the Bank of England may be gearing up to accelerate rate cuts. As a result, the U.S. dollar continues to strengthen, while the British pound faces downward pressure. Investors should stay alert to the latest economic data and policy signals to navigate shifting global market trends.

Warren Buffett to Step Down as Berkshire Hathaway CEO in 2025, Greg Abel to Lead Company into New Era

Warren Buffett announced he will step down as CEO of Berkshire Hathaway at the end of 2025, marking the close of a legendary six-decade investment career. Speaking at the company’s annual shareholders meeting, Buffett shared candid insights into the future of the market and officially named Greg Abel as his successor. From Berkshire’s massive cash reserves and strategic moves in Japan, to a clear-eyed assessment of AI and the global economy, the event underscored the enduring legacy of value investing and signaled a new era for Berkshire Hathaway.

Euro to Dollar Volatility Surges as Inflation and Jobs Data Shift Fed and ECB Rate Expectations

The euro saw sharp fluctuations against the U.S. dollar as a wave of major economic data was released from both the United States and the Eurozone. A rise in core inflation and stronger-than-expected job numbers have added uncertainty to market expectations surrounding future interest rate decisions by both the Federal Reserve and the European Central Bank. Investors should closely monitor upcoming policy signals and key technical levels to stay ahead in the forex market.

U.S. Adds 177,000 Jobs in April, Beating Forecasts — Healthcare and E-Commerce Lead Gains as Wage Growth Cools, Easing Inflation Concerns

In April, the U.S. economy added 177,000 non-farm jobs, surpassing market expectations and signaling continued strength in the labor market. Job growth was led by the healthcare sector and e-commerce logistics, which remained key drivers of employment. The unemployment rate held steady at 4.2%. Notably, the pace of average hourly wage growth slowed, a trend that could help stabilize inflation and give the Federal Reserve more flexibility in setting future interest rate policy.

U.S. GDP Shrinks 0.3% in Q1 2025

The U.S. economy stumbled at the start of 2025, with first-quarter GDP contracting at an annualized rate of 0.3%. Meanwhile, inflation rose to 3.5%, fueling fresh concerns about stagflation—a troubling mix of slowing growth and rising prices. A sharp shift in trade policy, coupled with a surge in imports, played a major role in dragging down economic performance.

The Federal Reserve now faces a difficult balancing act: whether to cut interest rates to stimulate growth or maintain higher rates to keep inflation in check. Diverging opinions across financial markets reflect the growing uncertainty, as inflation expectations climb and consumer data sends mixed signals.

Adding to the complexity are rising global tariff risks and a strengthening U.S. dollar, both of which could further strain the economic outlook. Investors and global markets will be keeping a close eye on how the U.S. navigates these mounting challenges in the months ahead.