On Tuesday, financial market participants received a piece of data that gives signs of a slowdown in economies in different countries. Namely, the PMI index (an index of purchasing managers, which is considered a leading economic indicator) showed a negative trend in China and a number of European countries. This led to a decrease in
The US data has started to miss expectations in the past few weeks which gave Gold a tailwind as it’s sensitive to interest rates expectations. In fact, we saw the market repricing expectations on the more dovish side with no more rate hikes expected and rate cuts starting to be priced as soon as June
EUR/JPY seems to have met some decent resistance around the 158.40 zone so far this week. The continuation of the uptrend could see the cross challeng لینک منبع : هوشمند نیوز
US: The Fed hiked by 25 bps as expected and kept everything unchanged at the last meeting. Fed Chair Powell reaffirmed their data dependency and kept all the options on the table. Inflation measures since then showed further disinflation. The labour market displayed signs of softening although it remains fairly tight. Overall, the economic data
US: The Fed hiked by 25 bps as expected and kept everything unchanged. Fed Chair Powell reaffirmed their data dependency and kept all the options on the table. Inflation expectations and CPI readings continue to show disinflation with the last two Core CPI M/M figures coming in at 0.16%. The US PMIs missed expectations across
The strong US data in the past months and the quick rise in Treasury yields and the US Dollar weighed a lot on Gold, which threatened at some point a complete breakdown. Recently, we started to see a turnaround in the data beginning with the miss in the US PMIs last week and the big
US: The Fed hiked by 25 bps as expected and kept everything unchanged. Fed Chair Powell reaffirmed their data dependency and kept all the options on the table. The US economic data keeps on surprising to the upside, but inflation expectations and CPI readings continue to show disinflation with the last two Core CPI M/M
September rate hikes less likely after weak European PMI round. Both the UK and Eurozone reports were much weaker than anticipated and signal an acceleration in the pace of contraction. At the same time the weakness is no longer concentrated in manufacturing, with demand falling across the board. Monetary policy is restrictive on both sides
The Fed is waiting for the totality of the data to be released before deciding what to do at their September meeting. As of now, the data supports the soft-landing narrative as the disinflation in the core measures continues but the strength in the labour market and consumer spending might keep inflation higher for longer.
Despite good economic data like lower core inflation, stable jobless claims, lower inflation expectations and strong consumer spending that support the soft-landing narrative, the S&P 500 just keeps on falling with very shallow pullbacks. One of the main reasons might be the non-stop rally in long term yields and real yields as it makes financial
