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Writer's pictureStéphan

FED's Dudley / 50bps next week ? / #USD stays under pressure #GOLD new highs #XAU #XPT following / U.S Aug budget deficit : $380bn / #NDVA matters either way



  • FED's Dudley suddenly talked 50bps, markets went on to price that risk last night! >>> GOLD breaking highs, Silver long way to go, Plat and Pall also on the move, great value still in the #GDX (previous metals on the move higher, while industrials struggle courtesy of China debacle - some argue China markets a good bet if Kamala wins - we shall see...)

  • FED pricing 36bps for next week and a total of 115bps priced in for 2024

  • USDollar in big danger overall, USDJPY through 140 will send a few alarm bells across FX world, 1.1200-50+ EURUSD, 1.3200+ CABLE 0.6800+ AUDUSD etc very key medium to long-term

  • Both the WSJ and FT reported that the U.S. rate cut decision will be a “line ball call” surprising markets that had assumed it would start off with a 25bpt move. Fed Fund futures imply a 43% chance it will be 50bpts up from 28% yesterday. The WSJ suggested the Fed is nervous about keeping rates too high for too long given that inflation and hiring are slowing down, though it didn’t quote any inside source

  • #NVDA obviously matters a lot to markets in general : nicely explained here, see Gamma Thread below >>> it is about 20% of most Tech ETF's, is it 7% of NDX, passive money is now more than half of the market, when rest of the market buys or sells #NVDA it matters greatly

  • ECB cut the depo rate by 25bp, as widely expected, and raised its core HICP inflation forecast for this and next year despite revising down GDP growth and wage growth and lowering its unit profit assumptions.

  • The US Treasury on Thursday reported a $380 billion federal budget deficit for August, a massive shift from the $89 billion surplus in August 2023

  • BOJ's Tamura: Cannot say whether we could raise rates by year-end >>> having seen JPY firm some 10-15%, looks like they may get cold feet

  • Brussels questions whether Starmer really wants a Brexit reset >>> don't mess his up Keir !!

  • Flights are getting more expensive again as airlines scale back their growth plans

  • Boeing workers going on strike after 96% vote for walkout


 
















Reminds me of something!




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