Federal Reserve Bank

Key events: USA - Labor Day Eurozone - HCOB Eurozone Manufacturing PMI (Aug) UK - S&P Global/CIPS UK Manufacturing PMI (Aug)  The S&P 500 ended higher on Friday, wrapping up August with its fourth consecutive monthly gain, as fading economic concerns fueled a strong rebound in stocks following an earlier selloff.

Understanding interest rates is fundamental to navigating the complexities of forex trading. Interest rates, which represent the cost of borrowing funds or the return on investment for lending capital, are pivotal economic indicators that shape monetary policy decisions and influence financial markets worldwide. Central banks wield significant influence over interest rates, using them as tools to regulate economic growth, control inflation, and manage employment levels.

Key events: USA - Initial Jobless Claims USA - PPI (MoM) (May) USA - 30-Year Bond Auction On Wednesday, the S&P 500 achieved an intraday record high before closing with a gain, despite the Federal Reserve indicating only a single rate cut for this year. Positive sentiment was buoyed by data revealing that May's inflation was cooler than anticipated.

In the complex ecosystem of modern economics, central banks stand as guardians of stability, with the Federal Reserve leading the charge. Their role transcends mere oversight; they are the custodians of economic equilibrium, particularly when uncertainties loom large. Among their arsenal of tools, interest rate manipulation emerges as a linchpin, influencing inflation dynamics and fostering growth.

Key events: USA - FOMC Member Mester Speaks USA - FOMC Member Kashkari Speaks Canada - BoC Gov Macklem Speaks On Monday, the Dow experienced a decline, influenced by a stumble in consumer stocks driven by McDonald's, coupled with an increase in Treasury yields following Chairman Jerome Powell's remarks dampening expectations of an imminent interest rate cut.

Key events: Japan - BoJ Interest Rate Decision Japan - BoJ Press Conference Eurozone - CPI (YoY) (Nov) USA - Building Permits (Nov) On Monday, the S&P 500 defied attempts by Federal Reserve officials to temper expectations for imminent rate cuts. The Dow Jones Industrial Average remained flat, the NASDAQ Composite climbed 0.61%, and the S&P 500 index rose by 0.5%.

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Key events: USA - Existing Home Sales USA - Existing Home Sales (Oct) USA - FOMC Meeting Minutes Global stocks held steady near two-month highs on Friday, and Treasury yields briefly touched two-month lows as investors maintained the belief that US interest rates have reached their peak and could potentially decrease next year.

Key events: USA - PPI (MoM) (Sep) USA - FOMC Meeting Minutes On Tuesday, the Dow Jones closed with gains, primarily influenced by fresh comments from the Federal Reserve suggesting a potential pause in rate hikes next month. This development helped keep Treasury yields in check. The Dow Jones Industrial Average experienced a 0.6% increase, equivalent to a rise of 185 points, while the Nasdaq saw a 0.8% gain, and the S&P 500 climbed by 0.7%.

Key events:   USA - Core Durable Goods Orders (MoM) (Aug) USA - Crude Oil Inventories US stocks continued their decline on Tuesday, extending losses for the month. Concerns among investors persist about the possibility of interest rates remaining elevated for an extended period and the potential impact of a government shutdown.