Comments made yesterday by Fed Chairman Jerome Powell, according to which US inflation has now stabilized in a downward trend, pushed the main stock indexes higher, many of which recorded record daily closes yesterday.
➡️ In yesterday's public statements, Fed Chair Jerome Powell stated that inflation in the United States is clearly declining, and these statements were interpreted by the market as a dovish intention that heralded an early rate cut. The CME FedWatch tool now shows a small increase in the numbers forecasting a rate cut at the Fed's September meeting, at 65%. This sentiment pushed stock markets higher, with sia the NASDAQ 100 That the S&P 500 which posted record closes, the NASDAQ above 20,000 and the S&P 500 above 5,500 each for the first time ever. Asian stocks followed the US higher during today's Tokyo session, with the Nikkei 225 index only about 1% below its all-time high. Trend traders will be interested in being long the major stock indexes now.
➡️ Markets await the release of the Fed's FOMC meeting minutes later today, which will be examined for clues to Fed members' thinking at the previous meeting.
➡️ The Japanese yen continues to weaken, with the USD/JPY currency pair settling at a new 38-year high of ¥161.87 late in the Tokyo session. Trend traders will be interested in being long this pair and/or on some yen crosses. Vanguard sees ¥170 as a possible target if the Bank of Japan fails to raise yields soon.
➡️ In the Forex market, the Australian dollar is the strongest major currency since Tokyo opened, while the Japanese yen is the weakest. This makes sense as sentiment shifts towards a greater emphasis on risk, as the Aussie is a key risk currency. It is also worth noting that the US dollar remains within a valid long-term uptrend.
➡️ Yesterday's flash estimate of the underlying Eurozone consumer price index (CPI) was only slightly higher than expected, with the flash estimate of the underlying consumer price index (CPI) coming in at an annualized rate of 2.9%, while a decline to 2.8% was expected.
➡️ Yesterday's data on job vacancies in the USA JOLTS were slightly higher than expected.
➡️ The following potentially high-impact data will be released today in the United States:
- ADP Change in non-agricultural employment
- ISM SME Services
- claim unemployment benefits
Credit by DailyForex.com