Ipek Ozkardeskaya
Swissquote Bank Ltd
The week kicked off on a positive note on expectation that when Federal Reserve (Fed) Chair Jerome Powell speaks at the Jackson Hole meeting on Friday, he will deliver a strong hint that the rate cuts will begin soon in the US. Both the Big Tech and small companies in the US gained with the thought of an approaching rate cut in the US. Even the energy stocks had a good session despite a heavy selloff in crude oil, which was triggered by the news that Israel accepted a ceasefire proposal in Gaza if Gaza says yes.
In individual stock news, AMD announced to buy ZT Systems to increase ‘its capabilities and expertise to optimise solutions at the systems, rack and the data center levels’ to compete with Nvidia. AMD jumped 4.5%. The news didn’t tame appetite for Nvidia, which also rallied more than 4% and closed the session at $130 per share. Even Intel gained yesterday.
Elsewhere, the European Stoxx 600 also opened the ween on a positive note and jumped above the 50 and 100-DMA, and the Japanese Nikkei 225 is better bid today after a moody Monday on a yen rebound. I expect the market mood to remain mainly optimistic into the Jackson Hole meeting with no major data points to hamper optimism. The US dollar remains weak – too weak – into that speech, the EURUSD consolidates gains near 1.1080 before today’s CPI read and Cable tests the 1.30 offers supported by relatively strong fundamentals. Actually, the UK printed the best GDP growth among major economies – including the US – in the first half of the year!
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
Recommended Content
Editors’ Picks
AUD/USD consolidates gains near 0.6750, awaits Fed Minutes
AUD/USD consolidates its recent strong gains to a one-month top near 0.6750, as traders opt to wait for the release of the July FOMC meeting Minutes, due later this Wednesday. Dovish Fed expectations remain a drag on the US Dollar, underpinning the pair.
USD/JPY holds recovery from two-week lows of 144.95
USD/JPY is trading near 145.50 early Wednesday, sustaining the bounce from two-week lows of 144.95. The pair has recovered following a bigger-than-expected Japan's Merchandise Trade Deficit, which weighed on the Yen despite a risk-off mood. Fed Minutes eyed.
Gold price holds above $2,500 mark, remains close to record high set on Tuesday
Gold price shot to a fresh all-time peak on Tuesday amid dovish Fed-inspired USD selling bias. Geopolitical tensions further contributed to driving flows towards the safe-haven XAU/USD. Bulls take a pause and await more cues about the Fed’s rate-cut path before placing fresh bets.
Ethereum weak open interest signals consolidation, ETH stays within sight of $2,600
Ethereum is down nearly 1% on Tuesday as its weak open interest indicates that prices will likely remain range-bound in the coming days. The choppy price action coincides with ETH ETFs recording a third consecutive day of negative flows, with $20.3 million in net outflows on Monday.
The rally wagon hits a speed bump
The rally wagon has finally hit a speed bump, with US stocks dipping after an impressive 8-day sprint. Maybe it's just a case of the market catching its breath, biding time as the anticipation builds for Fed Chair Powell’s grand entrance at the Jackson Hole showdown.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.