Eurozone Inflation and US PMIs Set to Shape Today’s Markets

Hello, traders. Welcome to the first day of October and the first trading day of the month. Yesterday, on Monday, the key highlight was the German CPI, which came in below expectations, putting additional pressure on the Euro. We also heard from Jerome Powell, Chairman of the Federal Reserve, who stated that the central bank is not on any preset course for rate cuts. Powell also indicated that the Fed may lower rates by an additional 50 basis points by the end of 2024, contingent on the economy performing as expected.

Today’s calendar for Tuesday started with better-than-expected retail sales data from Australia, which came in at 0.7%. Investors are now focusing on the upcoming Eurozone inflation report and the manufacturing PMIs from the US, which are expected to remain below 50. Additionally, we have the JOLTs job openings from the US later today, which will provide further insights into the labor market.

On the charts, European markets saw notable weakness yesterday, and it looks likely that this trend will persist today. On the currency front, the Australian dollar has gained strength following the positive retail data, while the Japanese Yen, New Zealand Dollar, and Swiss Franc are experiencing weakness. In commodities, precious metals saw a significant bearish correction yesterday, while oil posted gains, although the long-term outlook for oil remains bearish overall.

Source: https://www.axiory.com/analytics/market-news/eurozone-inflation-and-us-pmis-set-to-shape-today