Last week’s macro backdrop showed cooling inflation but softening demand. US retail sales unexpectedly declined by 0.9% in May — the biggest drop in four months — hinting at consumers pulling back amid high rates and lingering price pressures.
Back in 2022, the US central bank – the Federal Reserve – began raising interest rates quickly to fight inflation. Rates went from nearly 0% to over 5% in just over a year.
Last week, investors were navigating a delicate balance between relief and risk. On one hand, US inflation data brought some welcome news – prices are rising more slowly than expected, giving the Fed more reason to hit pause on rate hikes.
EUR/USD is trading near its highest level of 2025, and on the surface, the trend looks strong. But traders aren’t just watching the price – they’re asking a deeper question: Is this move backed by real demand, or could it be a short-lived spike?
Interest in the Emerging Market (EM) region has increased in 2025. Their valuations remain low, but recent growth trends and external risks (like currency instability) have shifted the perspective. We analyse the fundamentals, examine current economic indicators, and determine if EMs represent genuine undervalued opportunities or potential pitfalls.
