As we hit midweek, Wednesday, 11 September 2024, brings some important economic data and developments that could stir up market movements. Investors remain cautious, keeping a close eye on inflation and central bank signals as key events unfold.
KEY INDICATORS
US inflation data ahead
The main focus today will be the release of the US Consumer Price Index (CPI) report for August.
This inflation data will provide critical insights into whether inflationary pressures are easing or persisting.
Any surprises could impact the market’s expectations for the Federal Reserve’s interest rate decision next week.
Tech sector under watch
The tech-heavy Nasdaq may see some volatility, with rising interest rate concerns continuing to put pressure on high-growth stocks.
Investors are likely to adjust their positions based on the inflation report and upcoming Fed decisions, making today a crucial day for tech traders.
Global markets reaction
European and Asian markets will also be in focus, reacting to their own inflation concerns and economic data.
Any ripple effects from US CPI data could influence global markets, especially as inflation remains a key worry across major economies.
ECONOMIC EVENTS
MARKET MOVERS
EUR/GBP
Potential long outlook Intraday bias stays neutral. Further decline is expected with 0.84469 resistance intact. Alternative scenario On the downside, below 0.84269 will resume the fall and target 0.84170 support. Firm break there will resume larger down trend. Bearish outlook persists, pair continues sideways trading
Nasdaq 100
Potential long preference Long positions above 18908.25 with targets at 18987.75 & 19077.71 in extension. Alternative scenario Below 18688.58 look for further downside with 18600.71 & 18502.38 as targets. Nasdaq 100 in potential retreat as market participants brace for CPI
GBP/USD
Potential long preference Long positions above 1.30939 with targets at 1.31023 & 1.31088 in extension. Alternative scenario Below 1.30714 look for further downside with 1.30597 & 1.30515 as targets. GBP/USD reverses below 1.3100 after dismal UK data, US CPI eyed
TODAY’S NEWS HEADLINES
Pound to euro rate firms following UK and German data releases
GBP/EUR traded at around EUR 1.1863, up roughly 0.2% from Tuesday’s opening rate.
The unemployment rate fell to 4.1% in July, down from 4.2%, boosting the GBP exchange rate.
Despite signs of persistent wage growth, the pound managed to stay above ground as markets remained confident that the Bank of England (BoE) would hold its current interest rate in the coming week’s decision.
Gold prices rise, near record high in wake of fiery presidential debate
Gold prices rose in Asian trade on Wednesday and were close to record highs as a fiery debate between presidential candidates Kamala Harris and Donald Trump raised uncertainty over the 2024 elections.
Spot gold rose 0.1% to USD 2,519.73 an ounce.
Gold futures expiring in December rose 0.2% to USD 2,548.45 an ounce by 00:19 ET (04:19 GMT).
Platinum futures rose 0.1% to USD 945.50 an ounce.
Silver futures rose 0.6% to USD 28.777 an ounce.
European Central Bank set to cut interest rates just days before the Fed’s big decision
Traders are widely anticipating an interest rate cut at the Federal Reserve’s 17-18 September meeting, as well as at the ECB’s meeting this week.
Euro zone inflation has come down.
Headline figures hit a three-year low in August with a reading of 2.2%, while core inflation by contrast is still more elevated at 2.8% with services prices pulling up that metric.
