The major assets were all over the place as traders priced in their Fed rate cut biases, U.S. political updates, and top-tier U.K. August U.S. jobs data showed signs of cooling but remained net positive, potentially paving the way for a measured Fed rate cut in September. Expectations are already running high for a September Fed rate cut, but can the upcoming CPI release determine how large the reduction could be? Pullbacks from last week’s moves and positioning ahead of this week’s catalysts got traders pushing the major assets all over the charts.
Hotter U.S. Core Inflation Reduced The Odds Of A 50bps Fed Rate Cut
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
We’re also a community of traders that support each other on our daily trading journey. The Bank of Canada (BoC) cut its overnight rate by 25 bps to 4.25% today, marking the second consecutive rate cut in its monetary policy tightening cycle. A hotter-than-expected core inflation reading sent the U.S. dollar higher, but risk appetite soon took over and limited the Greenback’s gains.
Week ahead – Fed to cut interest rates, BoE and BoJ to remain on hold
Big news events can, and often do, cause big swings with a single movement going xtb review several percent in one direction. Brokers and market makers offer FXStreet’s calendar to their clients as a tool to trade. Employment situation update revealed a mixed picture, with signs of cooling in the labour market but continued wage pressures.
Daily Broad Market Recap – September 5, 2024
- For share CFDs you trade at the underlying market price and pay a small commission.
- The 10-year US Treasury bond yield stays in the red below 3.7% as markets reassess the odds of a large Fed rate cut, helping XAU/USD push higher.
- This allows us to provide traders with real-time notifications on how each word of Fed-speak impacts the US Dollar.
- We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools.
- This week proved to be rough for risk assets as market players had to price in top tier less optimistic news & data, most notably jobs updates from the U.S.
With not a lot of fresh catalysts to consider, the markets are positioning themselves ahead of anticipated data releases on Wednesday and Thursday. We have developed a custom AI model which analyzes all the relevant speeches by the FOMC members and rates them on a dove-hawk scale. This allows us to provide traders with real-time notifications on how each word of Fed-speak impacts the US Dollar. Financial markets are highly sensitive to expected changes in interest rates by the Federal Reserve(Fed). When decision-makers at the Fed signal the path of interest is lower, their speech is dovish.
You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
A flag icon indicates the country of the data release, and next to it, its currency. So you can quickly scan and see what currencies might be affected today or in some specific days. Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd. We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools.
Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing. This week proved to be rough for risk assets as market players had to price in top tier less optimistic news & data, most notably jobs updates from the U.S. We’ve got no less than top-tier U.S. inflation reports and a central bank decision, plus U.K. Gold preserves its bullish momentum and trades near $2,580 after setting a new record-high slightly above this level.
USDCAD a little higher on the week but gives up gains. What’s ahead for the pair?
For share CFDs you trade at the underlying market price and pay a small commission. For all other CFDs and spread bets, you pay a spread around the market price. CFDs and spread bets are suitable questrade forex for leveraged dealing on falling and rising markets. When the markets are hotly debating the Fed’s next policy moves, U.S. labor market updates are guaranteed to make market players jittery. Bitcoin trades above $58,000 at the time of writing, adding 2% to its value this week. Ethereum hovers around $2,300 as WazirX exchange exploiter moves 5,000 Ether to a new wallet address and a crypto mixer.
European Central Bank (ECB) policymakers announced their unanimous decision to lower their main deposit rate by 0.25% as expected, following its previous cut in June. Markets are always adjusting to Federal Open Market Committee (FOMC) future interest rate projections. There are 17 FOMC board members, but only 12 of them actually vote on the FOMC meetings, held eight times a year.
The 10-year US Treasury bond yield stays in the red below 3.7% as markets reassess the odds of a large Fed rate cut, helping XAU/USD push higher. Sometimes, central bankers are scheduled to make public appearances but they do not talk about monetary policy, failing to make any impact on markets. When this happens, the result of the speech in our Economic Calendar will be N/A. It’s the most complete, accurate and timely economic calendar of the Forex market. We have a dedicated team of economists and journalists who update all the data 24h a day, 5 days a week.
