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Can Inflation Data Push the Fed Toward a Bigger Cut? |
Markets open the week with monetary policy in the spotlight. The question is no longer whether the Fed will cut rates, but how deep that cut will be. A 25-basis-point move is the base case, though talk of a larger 50-basis-point cut is gaining traction. US inflation figures and the ECB decision will set the tone in the days ahead.
Three events stand out as potential market movers. Producer prices (PPI) will offer the first signal on cost pressures. Consumer prices (CPI) will be decisive in shaping the Fed’s choice between a smaller or larger cut. And the ECB’s policy update, together with President Lagarde’s remarks, could swing the euro and European markets.
Will the data tip the scales toward a bold half-point cut, or keep the Fed on the safer path with 25 basis points?
Key events of the week: |
- US PPI – 2:30 PM, 10 Sept (CET)
- ECB Rate Decision – 2:15 PM, 11 Sept (CET)
- US CPI – 2:30 PM, 11 Sept (CET)
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Weekly Market Outlook |
| Bullish Momentum Emerging on EURUSD
After a month of sideways consolidation, EURUSD is beginning to break higher with fresh bullish momentum. Price is holding above both EMAs, while the open favours further upside. Liquidity resting above the range is now an attractive target for the market.
Will buyers push EURUSD into the liquidity zone, or will a reversal at key levels slow down the move?
➡️ Read the full breakdown in our Trading Week Ahead article. | |
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