

Heightened volatility despite stable Fed rates

The Federal Reserve has, unsurprisingly, has maintained the Federal Funds rate steady at its previous rate a move that is very much aligned with market expectations. While maintaining its cautious approach to monetary policy, the Fed has signaled the possibility of a rate cut if inflation continues to ease. Initial jobless claims also increased significantly, the largest rise. The manufacturing sector in the U.S. continues to face challenges, as evidenced by the ISM Manufacturing PMI dropping, marking the sharpest contraction. In contrast, the ISM Services PMI is expected to rebound, indicating a return to expansion in the service sector. Read more about Fed and speculation here.

more about Fed and speculation

Disclaimer:

Traders should monitor commentary from the Fed closely and testimony from Jerome Powell could significantly impact the direction of the market, especially if he hints at potential rate cuts or continued caution. Moreover, the upcoming economic data releases, including the personal consumption expenditures index, will further influence market sentiment.

Publication date:

2024-08-09 10:50:27 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.