šØATTENTIONšØ
š„PART 2: The impact of this is HUGE. This is what could happen looking ahead:
ā ļøThe data from this week has reignited fears of RECESSION; the data from Thursday and Friday could INCREASE these fears:
šIn part 1 we saw how, following this week's data, the number of rate cuts expected by investors rose to almost FIVE
šThis is expected as a measure by the FED to AVOID the recession and improve the ECONOMY.
šThe PROBLEM would be if the FED does NOT meet investors' expectations; remember that the FED only projected 2 cuts for this year
What are the next FUNDAMENTAL data of this week
šOn Thursday we have:
šø Interest rate decision in Japan:
-It is expected that they will keep the rate at 0.5%. You have a post where I explain the importance of this
-In short, increasing the rate means REDUCING liquidity globally and vice versa
-KEY will be the statements they provide
šøManufacturing PMI and new unemployment claims:
-Both economic data that could INCREASE fear of recession
šOn Friday we have:
šøAverage hourly earnings, non-farm payrolls, and unemployment rate
-The labor report every month is VERY IMPORTANT; remember that the FED stated that the weakening labor market could prompt them to cut the interest rate
-Considering that inflation is doing well, a bad labor report would warrant rate cuts
#PMI #Fed #japon #economy #liquidez $USDC