Welcome to Extreme Investor Network, your go-to source for expert analysis and insights on the stock market, trading, and Wall Street. Today, we want to delve into the US Economic Calendar and provide you with valuable information that will help you make informed decisions in the world of trading.
As we head into the new week, investors should pay close attention to comments from the Fed, particularly those related to the US labor market, inflation, and the Fed rate path. These comments have the potential to impact US dollar demand and subsequently influence trading decisions.
Market predictions suggest that the Fed is likely to cut interest rates by 25 basis points in September. However, there is also speculation about the possibility of a 50-basis point rate cut to support the US labor market. Such a move could result in a USD/JPY fall below 145, presenting new trading opportunities for investors.
It is essential to keep an eye on the CME FedWatch Tool, which indicates a decreased probability of a 50-basis point Fed rate cut from 36.0% on August 23 to 30.0% on August 30. Additionally, Friday’s US Jobs Report is expected to play a crucial role in shaping the September interest rate decision. Any indications of higher unemployment or softer wage growth could lead to increased bets on a 50-basis point Fed rate cut.
Expert opinions, such as that of Shane Oliver, Head of Investment Strategy and Chief Economist at AMP, provide valuable insights into the Fed rate path. Oliver’s analysis of Friday’s inflation numbers suggests a potential rate cut in September, depending on economic indicators such as jobs data.
Looking ahead, short-term forecasts for USD/JPY appear bearish, with trends relying on various factors such as private sector PMI, wage growth, and household spending figures from Japan. Positive data from Japan could boost bets on a potential rate hike by the Bank of Japan, while weaker US economic indicators may raise expectations of a more dovish Fed rate path.
As investors, it is crucial to stay informed and remain vigilant in monitoring real-time data, central bank updates, and expert commentary to adjust trading strategies accordingly. By staying updated with the latest news and analysis from Extreme Investor Network, you can effectively manage USD/JPY volatility and make sound investment decisions.
In conclusion, the USD/JPY price action presents both opportunities and challenges for traders, with key support and resistance levels to watch. By keeping a close watch on market indicators and expert opinions, you can navigate the ever-changing landscape of the stock market with confidence. Stay tuned to Extreme Investor Network for more valuable insights and analysis to enhance your trading experience.