What Does Tonight’s Fed Rate Cut Mean For Gold and the Yen?
- The UK’s inflation remains at 2.2% as per previous expectations. The Pound remains slightly weaker on Wednesday.
- Gold retraces as traders increase the possibility of a 0.25% rate cut after yesterday’s Retail Sales.
- Gold positions break the previous annual record of 242.314K indicating the high demand. JP Morgan advises the
US Market Awaits Fed: Will a 0.25% Cut Cause a Drop?
- European indices including the Euro Stoxx 50 and the DAX continue to trade higher.
- The European Central Bank’s latest cut continues to benefit European stocks.
- US Stocks “mixed” with the Dow Jones rising 0.55%, the SNP500 0.14% ending the day 0.47% lower.
- The Dow Jones was the best performing US
Market Update – Markets prepare for US CPI & Harris-Trump high-stake debate
Asia & European Sessions:
- Wall Street recovered slightly from Friday’s dip. Dip buying got the ball rolling and short covering has added to the bullish momentum.
- Expectations for a soft, rather than hard landing, with the FOMC expected to cut rates by only -25 bps rather than -50 bps have
Market Update – Eyes on ECB!
US inflation data supported bets for a rate cut from the Fed next week, but also argued for gradual moves.
Asia & European Sessions:
- Selling initially drove the moves on Wall Street and Treasuries as the pick up in the monthly US CPI core rate weighed on aggressive Fed rate
Market Update – Safe Havens in demand; Eyes on CPI
Investors remain cautious about the gloomy outlook for China’s economy & worry that the Fed has delayed easing monetary policy. Traders are anticipating at least 1 significant rate cut this year, ahead of the CPI report, which is expected to show modest inflation growth.
Asia & European Sessions:
- Asian equities