$ETH Quite strange, isn't it? Two opposing indicators. Update on the US economy

• Initial Jobless Claims (week ending August 16):

The number of unemployment claims rose to 235,000, an increase of 11,000 from the previous week, the highest level since June, exceeding expectations (225,000) — a sign that the labor market is showing signs of weakness.  

• S&P Global Flash PMI (August):

• Composite PMI edged up to 55.4 from 55.1 last month — the private sector continues to expand.

• Manufacturing PMI surged significantly: rising to 53.3, the highest since May 2022 — manufacturing is clearly recovering.

High PMI indicates that the US economy is still expanding, especially the manufacturing sector is thriving, which often reduces the Fed's motivation to cut interest rates, supporting the USD, causing negative pressure.

• On the contrary, the spike in claims suggests weakness in the labor market, which could be a reason for the Fed to consider easing monetary policy sooner, supporting digital currencies.

It’s contradictory, isn’t it? But there’s a reason for that; I will analyze it more clearly for you in the next post. $INJ