This strategy session focuses on the big economic data ahead this week which is the Producer Price Index (PPI on Tuesday) and the Consumer Price Index (CPI on Wednesday). This is on the back of the stronger than expected US Jobs Data from Friday ( but was it really as strong as the headline data proclaims….???? We have seen how they work this where the market will trade on the first number and then they revise away the gains in subsequent data points). The combination of these two data points will put into question how many rate cuts the US can expect from the Federal Reserve who controls short term rates (and tries to control longer term too when they can…although they shouldn’t).
This ties into the rest of the world and their likely need to keep lowering rates. This causes a currency issue and demand for the US Dollar over other currencies and put a further strain on the smaller (emerging markets) as well as many of the larger economies too. This is why we want to keep our eye on England this week via the British Pound and their Debt auctions to see how well this is received. It could begin to confirm more about Europe, which is a huge component of the global economy.
Could these job cuts be a canary in a coal mine for the broader economy? Wall Street my know something other industries haven’t yet discovered, or could this be the front edge of AI “agents” taking over jobs that are the assistant level that technology is prepared to replace? If so, this could hit the US consumption engine should this be the front edge of job cuts on a broader scale?
We also take a quick look at the US 10 Year Note and a brief look at the Energy Markets as well as Gold and Metals. Its all connected. Please join us this week live on Rumble and LFA. Thanks and good wishes to all for a good week ahead.