Positive risk sentiment after Powell statements

Important news this week

• Wed, 27th, 03:30 CET        AU        Consumer prices index.
• Thu, 28th, 14:30 CET        US        Gross domestic product.
• Fri, 29th, 14:30 CET        CA        Gross domestic product.
• Fri, 29th, 14:30 CET        US        Core PCE price index.

Powell policies

Despite recent statements that Jerome Powell might cut rates in September economic data might still print a different picture. Friday’s PCE deflator could show a rise in inflationary pressure, which might signal that a rate cut would too early. Just the expectation alone caused stock markets to move higher as the Dollar weakened. Furthermore the added tariffs did not flare up much in the data but might show some impact at some point. After inventories have been used up data and rising prices might be the result.     

Market talk

Due to the weakness of the Dollar equities continued their way higher on Friday. The positive sentiment might now continue as the Fed is expected to cut rates in September as Jerome Powell pointed out during his speech in Jackson Hole. The positive sentiment continues to also lift metals and oil as well as the crypto space. Despite the slight correction in some tokens the upside might continue ignited as well by positive sentiment in the Nasdaq. With only limited economic data on the calendar the focus might be on Friday’s PCE price index, which is usually the main focus for rate decisions by the Federal Reserve.

Tendencies in the markets

• Equities positive, USD weaker, BTC sideways, ETH positive, oil positive, Silver positive, Gold sideways, JPY sideways.