U.S. Stock Futures Fall After Powell Dents Hopes for More Cuts
S&P 500 Index contracts fell 0.2%, after dropping as much 0.5%, as of 8:17 a.m. in Tokyo. Contracts on the Nasdaq 100 slipped 0.3%, while those on the Dow Jones Industrial Average were down 0.2%. The S&P 500 Index fell 1.1% on Wednesday as volume surged.
Powell said Wednesday’s first interest rate cut since the financial crisis was to “insure against downside risks.” U.S. President Donald Trump said “as usual, Powell let us down,” adding the market wanted to hear the Fed was beginning an aggressive rate-cutting cycle
The FED Rate Cut and Stats to Provide Direction
The Day Ahead
It’s a relatively busy day ahead on the economic data front.
Economic data due out of the Eurozone include July manufacturing PMI numbers out of Spain and Italy. While finalized manufacturing PMIs out of France and Germany will unlikely have an influence, the Eurozone’s manufacturing PMI will also have an impact on the day.
While the stats will provide direction, we can expect the majors to respond to the FED’s interest rate cut and the FOMC rate statement.
Out of the U.S, the market’s preferred ISM manufacturing PMI will also have an impact on the majors
USD/JPY sits near 2-month tops, comfortably above 109.00 handle
The USD/JPY pair built on the post-FOMC positive move and rallied further beyond the 109.00 handle, hitting two-month tops on Thursday.
Trading Central – GBPJPY
The downside prevails as long as 135.31 is resistance.
Trading Central – EURGBP
The upside prevails as long as 0.8981 is support.
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