🔥IMPORTANT🔥
💥It is FUNDAMENTAL to take into account what we learned THIS WEEK as it DIRECTLY AFFECTS the FED's DECISION next week and your investments
🧐Let’s recap the economic data from this week
👉First of all, why is this IMPORTANT and why do you need to know it
🔸This is IMPORTANT because, in addition to directly affecting asset prices, it impacts the FED's future decision
🔸The FED's future decision affects the most important aspect for financial markets: LIQUIDITY
What data did we have this week
👉On Tuesday, the first data started arriving indicating ECONOMIC SLOWDOWN
▪️The opening of NEW JOBS PLUMMETED, dropping from 7.480M to 7.192M while 7.490M was expected
▪️It was the WORST reading in 4 years and WORSE than expected
▪️Consumer confidence PLUMMETED for the fifth consecutive month and more than expected as fears about employment rise
▪️It fell to its lowest level since the early days of the COVID-19 pandemic, going from 93.9 to 86, while an 87.7 was expected
👉On Wednesday, fears of RECESSION STRONGLY INCREASED
▪️The U.S. GDP plummeted from 2.4% to -0.3% while a 0.2% was expected
▪️The U.S. ECONOMY is one quarter away from entering TECHNICAL RECESSION if another decline is recorded
▪️Additionally, new jobs outside the agricultural sector dropped from 147K to 62K while 114K was expected
▪️The GOOD news was that the CORE PCE FELL more than expected, dropping from 0.5% to 0% while a 0.1% was expected
👉On Thursday, NEGATIVE data for the economy continued
▪️New unemployment claims went from 223K to 241K while 224K was expected
▪️A data point that continues to show WEAKNESS in the labor market.
▪️The manufacturing PMI remained at 50.2 while 50.7 was expected
▪️
