As we start the third week of August, the markets are preparing for several important events that could influence the rest of the summer. We’ll be watching for key economic data and important earnings reports from major retailers, which could drive market movements.
KEY INDICATOR
Eurozone Consumer Price Index (CPI) YoY (July):
- Consumer Price Index CPI In the Euro Area increased to 126.60 points in July from 126.58 points in June of 2024.
- Global macro models and analysts expect the Euro Area Consumer Price Index (CPI) to reach 127.17 points by the end of this quarter. In the long term, they project the CPI to trend around 129.06 points in 2025 and 131.77 points in 2026.
MARKET MOVERS
EUR / USD
XAUUSD
Nasdaq 100
TODAY’S NEWS HEADLINES
Gold holds near record high, Fed rate cut bets support
- At 05:12 ET (09:12 GMT), Spot gold was down 0.2% to $2,5031.78 an ounce.
- Gold futures was up 0.1% to $2,540.65 an ounce, close to the all-time high of $2509.65 hit on Friday.
- The recent surge in gold has seen prices rise more than 20% so far this year. Rising geopolitical tensions, strong central bank purchases, and renewed confidence in the economy are driving this increase.
Fed rate cut path to be ‘gradual and shallow’
- The S&P 500 is slightly above its end-July levels.
- The NASDAQ is nearly there, while the Euro Stoxx is about 1% below its end-July levels.
- It points out that “the September cut pricing is now close to fair,” although there is some potential for further adjustment in December cut pricing.
Bearish dollar momentum building; sterling hits one-month high
- The U.S. dollar fell Monday ahead of the release of minutes from the Federal Reserve’s July policy meeting.
- At 05:40 ET (09:40 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.3% lower to 101.977, falling close to seven-month lows.
- Traders have fully priced in a 25-basis-point rate cut from the Fed in September, with a 24.5% chance of a 50 bp move.
- GBP/USD traded 0.2% higher at 1.2963, climbing to a one-month high as sterling benefits from dollar weakness.
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