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Week ahead the uncertain markets brace for employment data

The U.S. economy continues to send mixed signals as it approaches a key juncture in its monetary policy. This is the case despite the news leaning positive last week. Latest data from the Bureau of Economic Analysis has printed a positive revision of the GDP growth rate for Q2 2024, up to 3% from the initial 1.3%. This came together with an unchanging Core Personal Consumption Expenditures (PCE) Price Index—the Federal Reserve’s preferred measure of inflation. Held steady at 2.6% year-on-year, this figure when accounted for month-on-month, prints at 0.2%, well within the regulator’s expectations. This stability in inflation coupled with economic growth suggests that the Federal Reserve might lean towards a more conservative rate cut of 25 basis points, rather than the more aggressive 50 basis points. Read more to discover how recent economic developments are reshaping trading strategies in this insightful article.

recent economic developments

Disclaimer:

Looking ahead to events this week, the market will be closely monitoring several key economic events that could provide further clarity on the direction of U.S. monetary policy. Risk management is advised to complement these releases closely for further indications of market trends.

Publication date:

2024-09-03 09:08:32 (GMT)

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