US PPI cooled more than expected; expectations of a Fed rate cut received another boost!

TOPONE Markets | 2024-08-14 10:46

Abstract：The U.S. PPI rose 2.2% year-on-year in July, lower than expected and a sharp drop from the previous value of 2.7%. Since then, traders have increased their bets on the Fed to ease policy. The decline in the U.S. PPI data is bound to affect the timing of the introduction of interest rate cuts, which is bearish for the U.S. economy and the U.S. dollar in the short term, but bullish for the U.S. dollar in the medium term.

Hot spot tracking

The U.S. PPI rose 2.2% year-on-year in July, lower than expected and a sharp drop from the previous value of 2.7%. Since then, traders have increased their bets on the Fed to ease policy. The decline in the U.S. PPI data is bound to affect the timing of the introduction of interest rate cuts, which is bearish for the U.S. economy and the U.S. dollar in the short term, but bullish for the U.S. dollar in the medium term.

The Chief of Staff of the Ukrainian Army: We will occupy more than 40 square kilometers of Russian territory and control 74 settlements in the Kursk region of Russia. Lithuanian Defense Minister: Russia is currently transferring troops from Kaliningrad to Kursk. The expansion of the scope of the war indicates that the war is about to enter a fever pitch, which is buulish for crude oil and gold.

Market news: After a landmark victory in an antitrust lawsuit, the US Department of Justice is considering asking Google to split up. Bearish for Google.

Product Hot Comment

Forex

Product	Yesterday's Change	Yesterday's Close	Today's Open
EUR/USD	▲0.55%	1.09924	1.09921
GBP/USD	▲0.77%	1.28623	1.28614
AUD/USD	▲0.72%	0.66362	0.66326
USD/JPY	▼-0.24%	146.846	146.866
GBP/CAD	▲0.53%	1.76284	1.76195
NZD/CAD	▲0.71%	0.83272	0.83223

📝 Review:On Tuesday, the US dollar index plunged after PPI data boosted expectations of a Fed rate cut, and eventually closed down 0.491% at 102.62. U.S. Treasury yields fell collectively, with the benchmark 10-year Treasury yield closing at 3.846%, a one-week low; the two-year Treasury yield fell below the 4% mark, closing at 3.94%.

🕵️ Operation suggestion:

USD/JPY 147.039 Buy Target Price 148.018

Gold
Product Yesterday's Change Yesterday's Close Today's Open
Gold ▼-0.25% 2465.02 2466.14
Silver ▼-0.45% 27.833 27.842
📝 Review:Supported by the weakening of U.S. Treasury yields and the U.S. dollar index, spot gold remained stable near its historical highs. It eventually closed down 0.29% at $2,465.06 per ounce. Spot silver eventually closed down 0.38% at $27.86 per ounce.
🕵️ Operation suggestion:
Gold 2466.37 Buy Target Price 2493.15
Crude Oil
Product Yesterday's Change Yesterday's Close Today's Open
WTI Crude Oil ▼-1.36% 77.183 77.199
Brent Crude Oil ▼-1.24% 80.471 80.502
📝 Review:International oil prices fell back, ending a four-day rally as the prospect of a possible oversupply of crude oil outweighed concerns about escalating conflict in the Middle East. WTI crude oil eventually closed down 1.25% at $78.58 per barrel; Brent crude oil eventually closed down 1.29% at $80.94 per barrel.
🕵️ Operation suggestion:
WTI Crude Oil 77.270 Buy Target Price 78.707

Product	Yesterday's Change	Yesterday's Close	Today's Open
Gold	▼-0.25%	2465.02	2466.14
Silver	▼-0.45%	27.833	27.842

Product	Yesterday's Change	Yesterday's Close	Today's Open
WTI Crude Oil	▼-1.36%	77.183	77.199
Brent Crude Oil	▼-1.24%	80.471	80.502

Indice

Product	Yesterday's Change	Yesterday's Close	Today's Open
Nasdaq 100	▲2.51%	19015.35	19005.15
Dow Jones	▲0.95%	39761.4	39753
S&P 500	▲1.58%	5433.25	5431.75
	▼0.00%	17559.3	17559.3
US Dollar Index	▼-0.55%	102.27	102.38

📝 Review:The three major U.S. stock indexes closed up collectively, with the Dow Jones Industrial Average up 1%, the S&P 500 up 1.68%, and the Nasdaq up 2.4%. Apple (AAPL.O) rose 1.7%, Tesla (TSLA.O) rose 5%, and Nvidia (NVDA.O) rose more than 6%, with market capitalization increasing by more than $400 billion in the past four trading days. The Nasdaq China Golden Dragon Index closed up 0.18%.

🕵️ Operation suggestion:

Nasdaq 100 18999.050 Buy Target Price 19457.200

Crypto
Product Yesterday's Change Yesterday's Close Today's Open
BitCoin ▲2.75% 60586.2 61041.3
Ethereum ▲0.63% 2699.1 2729.4
Dogecoin ▼-0.66% 0.10519 0.1063
📝 Review:Looking at the current market dynamics, the short side has a significant advantage in Bitcoin transactions. As of the latest trading data, the price of Bitcoin has still failed to break through the 59,200-point mark, maintaining a narrow range of fluctuations around 59,000 points, showing the market's indecision. It seems quite difficult to break through to 60,000 points. Similarly, it also faces resistance when it falls to 58,000 points. In this context, the 4-hour K-line chart in the evening becomes particularly critical.
🕵️ Operation suggestion:
BitCoin 60663.9 Buy Target Price 62453.3