{"id":19985,"date":"2024-07-31T12:14:53","date_gmt":"2024-07-31T20:14:53","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=19985"},"modified":"2024-07-31T12:14:53","modified_gmt":"2024-07-31T20:14:53","slug":"fomc-rate-decision-looms-amid-moderating-labor-costs-and-subdued-inflation","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/fomc-rate-decision-looms-amid-moderating-labor-costs-and-subdued-inflation\/","title":{"rendered":"FOMC Rate Decision Looms Amid Moderating Labor Costs and Subdued Inflation"},"content":{"rendered":"
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Markets Post FOMC and Pre NFP<\/h3>\n

By Mark O’Brien, Senior Broker<\/p>\n

General:\u00a0<\/strong><\/p>\n

In a lead-in to today\u2019s FOMC rate decision, the Labor Department reported that U.S. labor costs increased moderately in the second quarter as private sector wages grew at the slowest pace in 3-1\/2 years.\u00a0 The report from the Labor Department this morning followed data last week showing inflation subsided considerably last quarter, with sub-3% readings in several measures.\u00a0 Traders \u2013 and maybe Fed policymakers \u2013 viewed the reports as more evidence inflation is earnestly on a downward trend and could ready the Fed to bring down borrowing costs.<\/p>\n

It wasn\u2019t expected that Federal Reserve policymakers would adjust their benchmark interest rate at the conclusion of their two-day meeting today.\u00a0 The economy remains resilient, but the fear of recession has not been completely overcome.\u00a0 With that said, this meeting may be the last time the FOMC leaves rates on hold.<\/p>\n

The markets now see a 90% chance of a twenty-five basis point rate cut in September, according to the\u00a0CME FedWatch Tool<\/a>.<\/p>\n

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While the U.S. central bank is inching toward a rate cut cycle, the Bank of Japan is moving in the opposite direction. Overnight, the BOJ raised its key short-term interest rate to 0.25%, the highest level\u202fsince December 2008.\u00a0 It also announced plans to cut its bond purchases in half until March 2026 to ensure market stability.\u00a0 This comes after years of Japan\u2019s negative interest rate policy that ended back in March.<\/p>\n

Indexes:\u202f\u202f\u202f\u202f\u00a0<\/strong><\/p>\n

As of this typing, the September E-mini S&P 500 stock index futures<\/a> contract climbed \u00b1110 points (a \u00b1$5,500 per contract move) \/ \u00b12%.\u00a0 The September E-mini Nasdaq jumped over 600 points (a $12,000 per contract move) \/ \u00b13%.<\/p>\n

Metals:\u202f\u00a0<\/strong><\/p>\n

Dec gold futures<\/a> prices traded up \u00b1$35.00 \/ oz. to \u00b12,487 \/ oz., its sixth highest close and within \u00b1$20 of its all-time high on growing optimism the U.S. Federal Reserve will conduct an interest-rate cut in September.<\/p>\n

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General,\u00a0P.S.:\u00a0<\/strong><\/p>\n

The next big scheduled event: this Friday\u2019s monthly Non-farm payrolls report from the U.S. Labor Department. It\u2019s widely considered one of the most important and influential measures of the U.S. economy.\u202f To convey its findings, the Labor Dept.\u2019s Bureau of Labor Statistics surveys about 141,000 businesses and government agencies, representing approximately 486,000 individual work sites (the report excludes farm workers, private and domestic household employees and non-profit organization employees).\u202f The report also includes other detailed employment data including the overall unemployment rate \u2013 as a percentage of the total labor force that is unemployed but actively seeking work \u2013 wages, wage growth and average workday hours.\u202f The report is released at 7:30 A.M., Central Time.\u202f Economists polled expect non-farm payrolls to have increased by approximately 178,000 in July, just below June’s 206,000 gain and in line with the recent three-month average of 177,000.<\/p>\n

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\"textalertsbanner<\/a><\/h3>\n

Daily Levels for August 1st, 2024<\/h3>\n

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Economic Reports<\/strong><\/div>\n
provided by:\u00a0<\/a>ForexFactory.com<\/a><\/div>\n
All times are Eastern Time ( New York)<\/div>\n
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* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc<\/a>. Any statement of facts\u00a0here in\u00a0contained are derived from sources believed to be\u00a0reliable,\u00a0but are not guaranteed as to\u00a0accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own\u00a0judgement\u00a0in trading.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Get Real Time updates and more by joining our Private Facebook Group! Subscribe to our\u00a0YouTube Channel Listen to our Market Recap Podcasts on Apple Podcasts     Markets Post FOMC and Pre NFP By Mark O’Brien, Senior Broker General:\u00a0 In a lead-in to today\u2019s FOMC rate decision, the Labor Department reported that U.S. labor costs […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-19985","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/19985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=19985"}],"version-history":[{"count":1,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/19985\/revisions"}],"predecessor-version":[{"id":19987,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/19985\/revisions\/19987"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=19985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=19985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=19985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}