Market Movers: Weekly Insights [9 September 2024]

Recent price increases in manufacturing and services and higher payroll numbers indicate potential inflationary pressure and rising consumption. This has heightened expectations for higher inflation. Following last Friday’s payroll data, 69% of the market expects a 25 basis point rate cut from the Federal Reserve.

Many believe the Fed has made progress on its dual mandate of stable inflation and high employment, with a smaller rate cut being more appropriate. In the forex market, XAUUSD shows a strong sell signal at 2513, while EURUSD has a sell signal at 1.11285, both with detailed stop loss and take profit levels.

CPI and PPI to Be Higher Than Expected

Manufacturing and services price indexes were reported to have risen last week, suggesting that price changes could push inflation higher. The payroll number that came out higher than the previous month is also a major factor in the increase in consumption, which can push inflation higher. 

25 Bps Will Make More Sense Than 50 Bps

After last week's Friday payroll data, 69% of the market projected the first 25bps cut. The market thinks the FED has succeeded in its Dual Mandate by keeping inflation stable and employment high. 

XAUUSD Signal 

Strong Sell : 2513

Sell : 2507 

SL : 2535 

TP : 2460 

EURUSD Signal 

Sell : 1.11285 

SL : 1.12049 

TP : 1.09904