Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Asset Watch
Tuesday, 3 September 2024
The latest US PCE data released last week came in lower than expected, with the year-over-year headline figure for July holding steady at 2.5% compared to the forecast of 2.6%. Similarly, the core PCE remained unchanged at 2.6%, slightly below the expected 2.7%. This softer data supports market expectations that the Federal Reserve might start cutting rates at its upcoming September meeting. However, the key question remains: by how many basis points will the Fed decide to cut?
The July NFP report released last month heightened recession fears among investors, triggering a major sell-off. However, markets later rebounded as subsequent data suggested that a recession was not imminent. As a result, all eyes are now on the upcoming August NFP report to provide further insights into the US job market. Market expectations are for the US economy to have added 164,000 jobs in August, with the unemployment rate potentially falling from 4.3% in July to 4.2%.
If the data disappoints, concerns over the trajectory of the US economy could resurface, raising the likelihood of the Fed opting for a 50-basis points rate cut in September rather than 25. Such a scenario would likely weigh on the US dollar while providing a boost to precious metals like silver.
Chart Source: ADSS Platform
On August 30, the price closed below the 50-day simple moving average suggesting a weakening bullish momentum. Right now, the price tests the low end of the current trading zone spanning between 28.45 – 31.75, A daily close below that level could embolden bears to take the initiative and press towards 26.19. However, it is important to monitor the support levels located at 27.17 and the upward trendline originated from the Match 27 low.
On the flip side, a bounce with a daily close above the low end of the zone reflects that the bullish momentum remains intact, potentially driving the price to revisit the high end of the mentioned trading zone. In this scenario, the downward trend line originating from the May 20 high should be kept in focus.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
