Asian stock indexes perked up on Thursday, riding the wave of new economic data from China and Japan. In China, retail sales in July pleasantly surprised to the upside, though industrial production didn't quite hit the mark.
Over in Japan, Q2 GDP outpaced expectations with a robust 0.5% quarter-over-quarter climb, translating to a 3.1% annual surge. Of course, the Yen didn’t blink, with the Bank of Japan members still hiding under their desks and the once-hurricane tailwind from the carry trade unwinding, barely stirring a breeze in USDJPY's sails these days.
Yet, the soft landing whispers from the US continue to serenade global risk markets.
Enter the new market oracle: while the latest US CPI print flashes a green light for the Fed to initiate rate cuts, possibly in September, the real debate is whether it'll be a bold 50bp dive or a more cautious 25bp trim. The outcome hinges on the upcoming August payroll fireworks: Will it rebound with a robust 160-200k job gain, brushing off July's jitters, or will a modest sub-100k reading push the Fed towards a heftier cut?
Amidst this, the plot thickens with the Texan hurricane twist. Trying to untangle the storm's impact from the usual job market ebb and flow is like spotting a needle in a swirling haystack. It will require some sharp-eyed data dissection to determine how much of the employment dip was whipped up by Mother Nature’s fury.
SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.
Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.
Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.
Recommended Content
Editors’ Picks
GBP/USD clings to gains near 1.2850 after UK data
![GBP/USD clings to gains near 1.2850 after UK data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/new-style-twenty-pound-notes-3079195_XtraSmall.jpg)
GBP/USD regains positive traction and trades at around 1.2850 in the European morning on Thursday. The data from the UK showed that the GDP expanded at an annual rate of 0.9% in Q2 as expected, helping Pound Sterling stay resilient against its peers.
EUR/USD holds steady above 1.1000 ahead of US Retail Sales data
![EUR/USD holds steady above 1.1000 ahead of US Retail Sales data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/usd-eur-banknotes-58361490_XtraSmall.jpg)
The EUR/USD pair consolidates its gains near 1.1010 after retracing from the fresh seven-month top during the early European session on Thursday. The Eurozone Gross Domestic Product growth figure for the Q2 printed exactly as expected, which lifted the Euro against the Greenback.
Gold: $2,470 appears a tough nut to crack for buyers
![Gold: $2,470 appears a tough nut to crack for buyers](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stacks-of-gold-bars-19033163_XtraSmall.jpg)
Gold price has managed to find its feet above the $2,450 psychological level, looking once again to challenge the $2,470 key resistance in the lead-up to the US Retail Sales and Jobless Claims data releases.
Ethereum price is poised for a decline as on-chain data shows negative bias
![Ethereum price is poised for a decline as on-chain data shows negative bias](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ethereum/ethereum_XtraSmall.jpg)
Ethereum's price is set for a downturn as it approaches its key resistance area of around $2,843. On-chain data further supports a bearish outlook, highlighted by a positive spike in Ethereum's Exchange Flow Balance and a decline in development activity.
Feeding off a diet of calming disinflation
![Feeding off a diet of calming disinflation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/EconomicHealth/GDP/Growth/businessman-is-stacking-coins-gm183865137-16478170_XtraSmall.jpg)
As the sun rises over Asia, the markets calmly grab the baton from a relatively serene US scene. The current buzz isn't about whether the Fed will trim rates at its spotlight-stealing September 17-18 gathering but how deep they'll dig into the cuts.