It seems the markets are moving dynamically, with mixed signals from both the U.S. and global economies. The focus remains on the upcoming U.S. PCE data on Friday, while Monday’s weak PMIs, particularly in Manufacturing, created downward pressure on EUR and GBP. Despite stronger-than-expected Composite and Services PMIs, the overall sentiment has been cautious, especially with Fed officials like Goolsbee, Bostic, and Kashkari not signaling major red flags but still supporting last week’s 50 bp rate cut.
China’s recent policy actions with the PBoC rate cut and support package have provided a much-needed boost to the markets, positively affecting Asian and European stocks. Commodities, especially gold and silver, are continuing their upward trend, supported by this news, with gold hitting new highs and silver back to the $31 level.
In cryptocurrencies, while Bitcoin and Ethereum are attempting to push through key resistance levels, their close correlation with U.S. indices means they might wait for more macroeconomic clarity, particularly from the upcoming U.S. GDP and Consumer Confidence data, to break out further.
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