Rumors Eclipse Data in Market Sentiment, Dollar Braces for Downside Risk
| Action Insight Weekly Report 9-14-24 |
| Rumors Eclipse Data in Market Sentiment, Dollar Braces for Downside Risk |
The financial markets have been more influenced by speculations than by concrete economic data, as anticipation builds ahead of Fed's interest rate decision on September 18. Recent US economic indicators, including the latest CPI report and the prior week's non-farm payrolls, pointed toward a cautious and modest 25bps rate cut. However, traders and investors chose to focus on media reports hinting that Fed's decision remains a close call, with the possibility of a larger50 bps cut still on the table. Whether these reports are based on legitimate leaks or speculation, the mere possibility of a larger cut has caused significant reactions across financial markets. Dollar and Treasury yields declined notably in the latter part of the week. Equity markets, on the other hand, rallied strongly, with DOW on the verge of making new historical highs. Gold prices shot to record, benefiting from expectations of looser monetary policy.... |
USD/JPY Weekly Outlook USD/JPY's fall from 161.94 resumed by breaking through 141.67 support last week. Initial bias stays on the downside this week for 139.26 fibonacci level. Decisive break there would carry larger bearish implications. On the upside, above 143.03 resistance will turn intraday bias neutral first. But outlook will remain bearish as long as 147.20 resistance holds, in case of recovery. | |
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