Crypto Scams Surge 45% in 2023: Consumers lost over $5.6 billion last year due to cryptocurrency-related scams, a 45% increase from 2022, according to estimates from the FBI.
China Exports Exceed Expectations in August with a Trade Surplus of $91 Billion
China’s exports experienced unexpected growth in August,
reaching their highest value in nearly two years,
providing a rare boost to an economy struggling under deflationary pressures.
Exports rose 9% from last year to around $309 billion,
the highest level since September 2022, significantly surpassing analysts’ estimates.
Customs authorities said on Tuesday that imports increased by only 0.5%,
leading to a trade surplus of $91 billion in August.
China’s exports have been a bright spot in an economy plagued by recession and a real estate crisis.
However, the influx of cheap goods into global markets has sparked reactions in the United States,
South America, and Europe, raising questions about the sustainability of Beijing’s economic growth strategy.
UK Unemployment Rate Slows to the Lowest Level Since the Start of the Year
The unemployment rate in the United Kingdom dropped to 4.1% from May to July 2024,
down from 4.2% in the previous three-month period, aligning with market expectations.
This marks the lowest level since the three months ending in January,
with the number of unemployed individuals falling by 74,000 to 1.44 million.
During this period, the number of people unemployed for up to 12 months declined below last year’s levels,
while those unemployed for more than 12 months also decreased but remained above last year’s estimates.
Meanwhile, the number of employed individuals rose by 265,000,
the highest increase in over a year and a half, reaching 33.23 million,
primarily due to a rise in full-time employment.
Additionally, the number of people holding second jobs increased during the quarter,
making up 3.9% of the total workforce. Lastly, the economic inactivity rate fell by 0.3 percentage points to 21.9%.
Crypto Scams Surge 45% in 2023
Consumers lost over $5.6 billion last year due to cryptocurrency-related scams,
a 45% increase from 2022, according to estimates from the FBI.
According to a report published on Monday, the FBI’s Internet Crime Complaint Center received about 69,500
complaints from consumers in the United States and abroad over the past year.
Although cryptocurrency-related complaints accounted for only about 10% of all financial fraud complaints,
The reports said that the losses from these scams made up nearly half of the total financial losses.
The cryptocurrency market rebounded after a downturn in 2022,
with coin prices starting to rise again last year, attracting the attention of scammers. Bitcoin’s price doubled last year and rose by about 35% in 2024.
U.S. Stocks Rise Amid a Buying Frenzy After a Sell-Off: A new wave of buying U.S. stocks at lower prices has driven a rebound following a sell-off triggered by economic concerns.
Traders are awaiting inflation data this week to indicate the potential size of the Federal Reserve’s interest rate cuts.
All major sectors within the S&P 500 index rose by about 1%. According to Bespoke Investment Group,
this increase followed the worst start to September since market data recording began in 1953. Tesla and Nvidia led the gains among major companies.
Meanwhile, Apple launched its latest iPhone 16, which CEO Tim Cook stated
was designed to fully leverage artificial intelligence, but its stock fell by 1.8%.
Tom Essaye of The Sevens Report commented, “We often see technical buying when prices drop,” adding,
“Economic growth is undoubtedly losing momentum, but a soft landing remains more likely than a hard one.
This week, the focus returns to inflation.”
Slight Movements in Treasury Bonds
Treasury bonds saw slight movements, with the probability of a half-point rate cut
at the Federal Reserve’s September meeting, dropping 20% from 50% last week.
According to a survey by the Federal Reserve Bank of New York published on Monday,
inflation expectations in the U.S. remained stable while fears of a default increased.
The S&P 500 hovered near the 5,460-point level, while the Nasdaq 100 rose by 0.8%,
and the Dow Jones Industrial Average added 1.1%. Boeing shares rose amid optimism that a labor agreement would prevent a strike.
At the same time, Google, a subsidiary of Alphabet,
returned to court to face allegations by the Justice Department that it was manipulating the digital advertising market. Oracle is expected to announce its results later today, Monday.
A Risky Situation
Ten-year Treasury yields remained stable at 3.7%.
The dollar rose, and Bitcoinsurpassed the $56,000 mark.
Craig Johnson of Piper Sandler stated,
“Stock investors are navigating a risky situation between optimism
over potential Fed rate cuts and fears of recession and the political landscape.”
He added, “Technical analysis of common market averages suggests
that last week’s weakness was merely a pullback within a long-term upward trend.”
On the other hand, according to RBC Capital Markets strategists,
U.S. stocks may remain volatile.
They could see further declines in the near term amid risks associated with seasonality,
sentiment, and the upcoming presidential election.
A team of strategists led by Lori Calvasina wrote in a note that
“any additional damage would remain within the range of a 10% pullback.”
They added that if hard landing fears escalate,
the risk of a decline linked to growth concerns in the range of 14%-20% “would also increase.”
Signals from the Labor Market
With labor market data indicating a slowdown rather than an imminent recession, HSBCstrategists led by Max Kettner said they are increasing their additional positions
in U.S. stocks based on expectations of resilient earnings in the third quarter.
On Monday, Savita Subramanian, an equity and quantitative strategy analyst at Bank of America,
stated that heightened short-, medium-, and long-term volatility
would make investment-grade stocks and yields more attractive than their growth counterparts. She added, “Better the tortoise (quality and yields) than the hare (growth and revaluation),”
noting that utility stock yields equate to Nasdaq yields “over the long term.”
She also mentioned that utilities have outperformed technology stocks this year.
According to Citigroupstrategists, last week’s sell-off
in U.S. stocks made the main indices more vulnerable to further declines.
A team led by Chris Montagu said that the broad-based stock sell-off,
especially in theS&P 500 index, signals a shift in risk appetite towards a more directly negative tilt.
The strategists noted that the closing of buy-and-sell operations
by hedge funds in the index left total investment exposure at half its previous peak in mid-July.
Hedge funds continued to reduce their positions in U.S. stocks,
with the S&P 500 experiencing its biggest weekly decline since March 2023.
Global Stock Sell-Off
Global stocks saw net sales for the eighth consecutive week, led by North America,
according to a report from Goldman Sachs Group’s prime brokerage desk for the week ending September 6.
This trend, which broadly began in May, has continued as funds liquidated positions
significantly to gain additional liquidity in anticipation of potential volatility surrounding the U.S. presidential elections.
Konstantinos Venetis of TS Lombard stated, “Slowdowns do not necessarily mean a recession,
and market corrections are not necessarily harbingers of a bear market.”
He added, “But increasing uncertainty on both the economic (growth)
and political (U.S. elections) fronts put additional pressure on near-term optimists.”
Venetis pointed out that while the U.S. Federal Reserve is ready to cut rates,
the question remains whether “precautionary cuts” will be too limited and too late.
He added, “The risk is that growth concerns gain their own momentum,
putting more pressure on the stock market, which already appears technically weak.”
The Role of Soft and Hard Landing
Seema Shah of Principal Asset Management believes that history indicates
the Fed’s success in achieving a soft landing versus a hard landing,
which will play a crucial role in determining the course of U.S. stocks.
For example, in 1985 and 1995, rate cuts supported strong stock gains while avoiding a recession.
In contrast, in 2001 and 2007, even aggressive easing was not enough
to prevent severe market declines amid economic slowdowns.
Shah said, “Today, markets remain cautiously optimistic,
reflecting hopes that rate cuts will avoid a recession.”
However, she warned, “If economic conditions deteriorate sharply,
recession fears could outweigh the benefits of rate cuts.
History shows that rate cuts are not the enemy themselves;
investors should focus on the economic context in which they occur.”
Anticipation of the Consumer Price Index Report
According to economists surveyed by Bloomberg,
a government report expected on Wednesday will show that the Consumer Price Index (CPI)
rose by 2.6% in August compared to the previous year.
This would be the lowest increase since 2021.
Under the traditional blackout period before the September 17-18 meeting,
Fed officials will not provide significant new guidance.
Chris Low of FHN Financial stated, “Inflation is important.”
He added, “Weaker numbers might encourage the Fed to cut rates by half a percentage point,
while any higher figures could limit the rate cut to a quarter point.
However, even if inflation moderates and prompts some participants to push for a larger cut,
we expect the Fed to settle on a quarter-point cut as an initial step,
with the option to move faster in future meetings if the data supports it.”
U.S. Stocks Rise Amid a Buying Frenzy After a Sell-Off
OPEC+’s Options for Managing the Expected Oil Surplus in 2025?: The OPEC+ alliance prevented an oil surplus this year by delaying plans to restore production.
This helped stabilize prices that had declined due to slowing economic growth in China and increased U.S. supplies.
However, forecasts indicate oil markets could face a surplus in 2025 despite OPEC+ cutting production.
This anticipated surplus is attributed to increased output from non-member countries like the United States, Guyana, Brazil, and Canada,
along with weak global demand growth due to the shift towards electric vehicles and China’s slowing economy.
The International Energy Agency expects global oil consumption to grow by less than 1% next year
amid weak post-pandemic economic recovery momentum and accelerated shifts towards alternative energy sources.
Meanwhile, global production outside of OPEC+ is expected to outpace this modest consumption growth,
with the United States contributing a significant share of this additional output.
As a result, the agency forecasts an increase in global oil inventories, particularly in the first quarter of 2025.
Despite these expectations, OPEC+ faces challenges adapting its strategy to the new variables.
Delaying plans to restore production could postpone the expected surplus, but pressures from member countries,
such as the UAE, which seeks to increase its output, may hinder these plans.
Saudi Arabia, which relies on high oil prices to finance its economic projects,
faces financial challenges if prices continue to fall.
According to forecasts by Citi Group and JPMorgan,
central banks and consumers might find some relief in the expected price drop to $60 per barrel.
However, this scenario puts pressure on producing countries.
Some analysts believe that OPEC+ may ultimately decide to take more drastic measures,
such as increasing production to counter competitors like U.S. shale oil producers.
However, this is not currently the most likely scenario.
The alliance may continue to delay restoring production to avoid the expected surplus in 2025.
Still, maintaining this policy depends on member states’ internal challenges and external pressures from global markets.
Source: Bloomberg
OPEC+’s Options for Managing the Expected Oil Surplus in 2025
Asian Stocks Slide on U.S. Slowdown Concerns: Asian stocks fell to their lowest levels in three weeks on Monday,
led by declines in Japan after U.S. jobs data intensified fears
that the Federal Reserve may have delayed cutting interest rates for too long.
Asian Stocks Drop as U.S. Economic Slowdown Concerns Worsen
Asian stocks fell to their lowest levels in three weeks on Monday, led by declines in Japan,
after U.S. jobs data intensified fears that the Federal Reserve may have delayed cutting interest rates for too long.
Japan’s Nikkei 225 index dropped to its lowest level in a month as recent gains
in the yen impacted the profit outlook for export companies amid slower-than-expected economic growth.
Australia and South Korea stocks also recorded losses, pushing the Asia-Pacific stock index to its lowest since August 16.
The yen, which had previously risen due to the Bank of Japan’s interest rate
hike in July and expectations of a Federal Reserve rate cut traded below 143 yen per dollar.
Markets Await U.S. Inflation Data
Traders are awaiting U.S. inflation data this week amid growing concerns that the Federal Reserve
may have delayed rate cuts too long as recession risks rise.
Treasury Secretary Janet Yellen sought to calm fears over the weekend,
saying she saw no “warning signs” in the financial system.
She reiterated her view that the U.S. economy had achieved a soft landing despite slowing job growth.
In contrast, Federal Reserve Governor Christopher Waller said he was “open” to the possibility of a larger rate cut.
European Central Bank Prepares for Another Rate Cut Ahead of Fed Decision
The European Central Bank will likely cut interest rates on Thursday
in preparation for a U.S. move the following week as the global monetary cycle shifts toward more synchronized easing.
Eurozone officials have indicated they will deliver a second reduction in borrowing costs following the cut in July,
which will be closely watched by investors seeking policy signals for further actions later this year. At least one more cut is expected in 2024.
After the Bank of Canada cut its interest rate on September 4,
the timing of the European Central Bank meeting,
days before the expected initial reduction by the Federal Reserve on September 18,
underscores how major advanced economies are now pivoting more toward supporting economic growth as inflation risks fade.
Global Markets Report: Key Economic Updates and Market Movements: This week, global markets were influenced by major economic data releases,
including Japan’s GDP, China and the U.S. inflation indicators, and the ECB interest rate decision.
This report analyzes key markets, including significant indices, currency pairs, and commodities. Content
04:30 CNY Consumer Price Index (Monthly)(Yearly) (August)
Wednesday, September 11, 2024
09:00 GBP GDP (Monthly) (July)
15:30 USD Core Consumer Price Index (Excluding Food and Energy) (Monthly) (August)
17:30 USD U.S. Crude Oil Inventories
Thursday, September 12, 2024
15:15 EUR ECB Interest Rate Decision (September)
15:30 USD Producer Price Index (Monthly)(Yearly) (August)
Dow Jones
The Dow Jones index saw sharp declines at the end of last week’s trading following U.S. labor market news.
Although the data was better than the previous month, it still indicates a decline in the U.S. job market.
The index reached 40,345 after breaking the 40,609 level, supporting continued downward movements targeting 39,268. After that,
new upward moves could emerge, especially as the U.S. Federal Reserve approaches the start of rate cuts.
USDJPY
The USDJPY is trading at its lowest level of the year, reaching 142.23 due to continued weakness
in the U.S. dollar, and the possibility that the Japanese
central bank might hike rates again by the end of the year.
The decline is expected to continue towards 141.60, and if broken and closed below,
Further declines may target the psychological support level at around 140.
Gold
Gold continues sideways trading between 2,470 and 2,530, waiting for clearer signals on the U.S. Federal Reserve’s rate cut series.
Technically, gold is expected to resume its upward trend
if bullish reversal price action appears around the 2,470 level, targeting 2,500 again.
EURUSD
The EURUSD pair trades around 1.1083 after bouncing off the secondary resistance level at 1.1138.
A bullish engulfing candle indicates further downside towards 1.1029. If broken,
the downward trend could continue towards the demand zone around 1.0950,
from which the pair might start a new corrective upward wave.
Bitcoin
Bitcoin has recently experienced substantial declines due to persistent selling pressure
and exits from funds amid the general uncertainty in the cryptocurrency market. Bitcoin is trading at 53,695, with movements indicating continued declines towards the psychological support level of around 50,000,
close to the current year’s low. From there, a corrective upward move towards 54,000 could begin again.
Hedge Funds Cut Oil Bets to Their Lowest Level in History: Hedge fund bets on benchmark crude oil contracts
have fallen to their lowest level in over 13 years amid
expectations of increased supply and weakened demand.
Content
Hedge Funds
Federal Reserve
Chinese Central Bank
Hedge Funds Reduce Oil Bets to Record Lows
Hedge fund bets on benchmark crude oil contracts
have dropped to their lowest levels since more than 13 years ago,
amid expectations of increased supply and declining demand.
Fund managers cut their combined positions on Brent and West Texas Intermediate by 99,889 contracts,
bringing the total net long positions to 139,242 contracts,
according to data from the European Futures Exchange
and the Commodity Futures Trading Commission as of September 3.
This is the lowest level since March 2011.
The deterioration in sentiment occurred amid a sharp drop in prices in recent weeks,
driven by concerns about demand in the U.S.
and China and intensified by aggressive selling from algorithm-based funds.
Negative sentiment was further exacerbated
by the potential for a deal to restore Libyan production
and a possible increase in “OPEC+” production next month.
Despite the group suspending its production recovery plan,
this decline did not succeed in lifting prices.
Federal Reserve Proposes Changes to Bank Capital Rules
The U.S. Federal Reserve and other regulators
are preparing to unveil comprehensive proposed changes to bank capital rules,
aiming to overcome strong opposition from the banking sector,
according to people familiar with the matter.
The 450-page proposal is expected to be unveiled
on September 19 and will reshape key components
of the U.S. bank capital system known as “Basel 3 Endgame,”
according to those who requested anonymity as plans may change.
The proposed adjustments are expected to help calm the concerns of Wall Street banks,
which launched an unprecedented lobbying campaign
after the plan was revealed in mid-2023.
This may help avoid potential legal battles with the industry,
which has strongly argued that raising capital requirements
would harm the economy and low-income borrowers.
Chinese Central Bank Halts Gold Purchases for the Fourth Month Due to Record Prices
The Chinese central bank did not add any gold to its
reserves for the fourth consecutive month in August,
as gold prices reached record highs.
According to official data released on Saturday,
the amount of gold held by the People’s Bank of China was 72.8 million ounces
at the end of last month, unchanged.
The bank had added to its reserves for 18 consecutive months until April of this year,
helping to support strong gold prices.
The Chinese central bank’s halt in gold purchases strengthens
indications that high prices are curbing global demand for gold from central banks,
following strong buying in the first half of the year.
However, many analysts believe that the central bank
purchases will remain a major driver for gold this year.
Hedge Funds Cut Oil Bets to Their Lowest Level in History:
U.S. Stocks Register Their Steepest Weekly Decline Since March: Renewed fears of an economic slowdown and the Federal Reserve’s slow
response resurfaced after the August jobs report, pushing markets into negative territory.
Stocks posted substantial declines, marking their weakest weekly performance since March 2023.
Bonds also fell, driven by disappointing labor market data,
heightening investor anxiety about the economic outlook.
The S&P 500 index dropped by 1.7%, while the Nasdaq 100 fell by 2.7%,
as data showed job growth was 23,000 jobs short of expectations in August.
Yields on two-year Treasury bonds decreased by up to 15 basis points before slightly recovering.
Federal Reserve Rate Expectations
Meanwhile, Wall Street’s bets on a 50 basis point Fed rate cut weakened
after Federal Reserve Governor Christopher Waller stated he was “open” to a larger reduction.
Scott Wren of Wells Fargo Investment Institute noted
that markets are now focusing on how accommodative
the Fed will be with its monetary policy and the speed of the economic slowdown,
expecting short-term volatility.
Labor Market Data and Reactions
Non-farm payrolls increased by 142,000 jobs in August,
the lowest three-month average since mid-2020.
The unemployment rate fell to 4.2% for the first time in five months,
reflecting the impact of temporary layoffs.
Stephen Blitz of TS Lombard indicated that the economy is nearing a critical turning point,
and upcoming Fed decisions on rate cuts will be crucial.
Decline in Stocks and Key Sectors
All major groups in the S&P 500 fell,
with significant companies like Nvidiadropping 4.1%
and Broadcom declined by 10% due to disappointing forecasts.
The Dow Jones Industrial Average fell by 1%,
and the Russell 2000 index of small-cap companies dropped by 1.9%.
Wall Street’s fear gauge, the VIX, rose to 22 points,
while 10-year Treasury yields stabilized at 3.72%.
The Fed’s Cautious Approach
Traders expect a rate cut of about 25 basis points in September,
with slim chances of a larger cut.
Krishna Guha of Evercore suggests that the Fed leans toward a gradual cut in September,
with the potential for accelerated reductions in November if employment risks increase.
How Does Wall Street View the Jobs Report?
David Donabedian of CIBC Private Wealth believes
the report highlights the risks of a soft landing without entering a recession,
with markets continuing to look for signs of the slowdown’s extent.
Seema Shah of Principal Asset Management states that the Fed’s
decision will hinge on balancing inflation and recession risks,
favoring a cautious 25 basis point cut.
Andrew Brenner of NatAlliance Securities considers
the report gives the Fed room to move in any direction
but believes the Fed is currently lagging behind the market’s pace.
In conclusion, expectations are growing for the Fed to begin a cycle of monetary easing,
but the size and pace of action remain uncertain,
reflecting significant challenges facing policymakers during
this sensitive phase of the economic cycle.
U.S. Stocks Register Their Steepest Weekly Decline Since March 2023
Nvidia CEO Loses $10 Billion as Chip Stocks Plunge: Jensen Huang, the Chief Executive Officer of NvidiaCorp., recently faced one of the most significant financial setbacks of his career.
In a single day, his net worth plummeted by $10 billion,
marking the largest wealth decline he has experienced
since the Bloomberg Billionaires Index began tracking his fortune in 2016.
This staggering loss was driven by a sharp downturn in Nvidia’s stock,
coupled with news that the U.S. Department of Justice (DOJ)
had issued subpoenas to the company as part of an ongoing antitrust investigation.
The Wealth Plunge: A Historic Drop for Jensen Huang
On Tuesday, Huang’s net worth fell to $94.9 billion,
a drop of approximately $10 billion in just one day.
This dramatic decline coincided with a 9.5% fall in Nvidia’sstock price,
a company that Huang co-founded and transformed
into one of the leading players in the global semiconductor industry.
The drop was not just a reflection of market volatility
but also a reaction to heightened regulatory scrutiny from the DOJ.
The investigation reportedly revolves around Nvidia’s
dominant position in the market and its business practices,
which some officials believe could be stifling competition.
DOJ Investigation: Escalating Antitrust Concerns
According to a Bloomberg report,
the DOJ has issued subpoenas to Nvidia as part
of its probe into potential antitrust violations.
The subpoenas are legally binding documents requiring
recipients to provide information that could be pivotal in the government’s investigation.
This move signifies a critical step toward
a possible formal complaint against the tech giant.
The DOJ’s concern lies in Nvidia’smarket practices,
particularly its influence on the supply chain
and potential penalization of customers who do not exclusively use its artificial intelligence chips.
Nvidia’ssuccess has made it a key player in the semiconductor industry,
particularly in the AI sector,
where its chips are considered unparalleled in performance.
However, this dominance has drawn scrutiny,
as antitrust officials worry that Nvidiamay be making
it increasingly difficult for other suppliers to compete,
thereby limiting customer choices.
Huang’s Journey and Nvidia’s Market Dominance
Despite the recent setback, Huang remains the world’s 18th richest individual,
with his net worth having grown by $51 billion year-to-date,
even after Tuesday’s steep decline.
Born in Taiwan and raised in Thailand, Huang emigrated to the United States,
where he co-founded Nvidiain 1993.
Since then, Nvidiahas grown into the world’s third-largest company by market value,
driven by the superior performance of its
products and the challenges faced by competitors in developing viable alternatives.
In response to inquiries about the ongoing probe, Nvidiahas defended its market position,
stating that its success is due to the quality of its products,
which deliver faster and more efficient performance than those of its rivals.
Conclusion
The recent events mark a tumultuous period for Nvidia and its CEO, Jensen Huang.
As the DOJ intensifies its scrutiny of Nvidia’sbusiness practices,
the company faces not only financial challenges
but also the potential for significant legal battles ahead.
For Huang, whose fortune has been built on Nvidia’sunparalleled
growth and innovation,
the road ahead could redefine his company’s
role in the tech industry and its impact on global markets.
Nvidia CEO Loses $10 Billion as Chip Stocks Plunge
Bitcoin Hits Lowest Level in a Month Ahead of U.S. Jobs Report: Bitcoin plunged to its lowest level amid a broad selloff in high-risk investments
in global markets due to concerns about economic outlooks.
Bitcoin Hits Lowest Level in a Month Ahead of U.S. Jobs Report
Bitcoin fell to its lowest level in a month amid a broad selloff in high-risk investments
in global markets due to concerns about economic outlooks.
The largest digital asset dropped more than 4%
at one point on Wednesday before paring some losses to trade at $56,635.
Most other cryptocurrencies, including Ethereum, also suffered similar losses.
The decline comes as investors worry about signs of economic slowdown in the U.S. and China,
leading to the worst wave of global stock losses since the market crash on August 5.
This pessimism has extended to the crypto market,
where traders eagerly await the U.S. jobs report on Friday to see if a deeper economic slowdown is looming.
China’s Service Sector Grows Less Than Expected in August
According to a private survey, China’s service sector activity grew less than expected,
adding to concerns about the economy’s health.
The Caixin China General Services PMI, compiled by Caixin and S&P Global,
Fell to 51.6 in August from 52.1 in the previous month.
The median forecast of economists surveyed by Bloomberg was 51.8. Any reading above 50 indicates an expansion in activity.
These results add to the growing picture of an economy that could be at risk of slowing down.
Official data released over the weekend showed that service industries, from restaurants to tourism,
were close to contraction during the last month of summer.
The sector is a key focus of government efforts to revive consumer demand, impacted by the ongoing property crisis.
Nvidia CEO Loses $10 Billion of Wealth in One Day
Jensen Huang, CEO of Nvidia, experienced an unprecedented drop in his wealth after chip stocks tumbled.
A report revealed that the U.S. Department of Justice
had issued subpoenas to the tech giant as part of an escalating antitrust investigation.
Huang’s net worth fell by about $10 billion to $94.9 billion on Tuesday,
marking his most significant single-day loss since the Bloomberg Billionaires Index began tracking his fortune in 2016.
Huang’s wealth declined following a 9.5% drop in the shares of the chipmaker he co-founded.
A spokesperson for Nvidia declined to comment.
Bitcoin Hits Lowest Level in a Month Ahead of U.S. Jobs Report
Dollar Rises for Fifth Day Ahead of Key Economic Data: The U.S. dollar continued rising for the fifth consecutive day as American traders returned from their holidays,
anticipating a busy week filled with economic data. On Tuesday, the dollar gained against most of its G10 peers.
U.S. Set to Impose Sanctions on Venezuelan Officials Over Maduro
The United States is preparing to impose new sanctions on
Venezuelan government officials in response to events during the re-election of Nicolás Maduro in July.
The Treasury Department is close to announcing individual sanctions against 15 officials linked to Maduro,
accusing them of “obstructing free and fair presidential elections,” according to documents seen by Bloomberg.
These measures target key leaders who the U.S. claims collaborated with Maduro to undermine the July 28 vote,
including members of the electoral authority, the Supreme Court of Venezuela, the National Assembly,
and the military and civilian intelligence services known as SEBIN and DGCIM.
These plans could be announced early this week and are subject to change before final approval.
Inflation in Switzerland Slows, Surpassing Expectations in August
On Tuesday morning, data from the Swiss economy
showed that the annual Consumer Price Index (CPI) rose by 1.1% in August,
below market expectations of a 1.2% increase and down from the previous 1.3% rise.
The CPI has been flat at 0.0% every month,
missing market expectations of a 0.1% increase but better than the last decline of 0.2%.
The data indicates weaker inflationary pressures,
supporting the likelihood of the Swiss National Bank cutting interest rates again this September for the third time this year.
Dollar Rises for the Fifth Day Amid Anticipation of a Busy Week of Economic Data
The U.S. dollar extended its gains for the fifth day as traders returned from their holidays
and anticipated a week packed with economic data releases.
The dollar gained against most of its G10 peers on Tuesday,
with the Bloomberg Dollar Spot Index rising by 0.1%.
In contrast, the Australian dollar was the weakest performer amid falling iron ore futures
and lower-than-expected GDP inputs.
Investors are looking ahead to several key U.S. economic reports,
including manufacturing data due today, service sector data on Thursday,
and the main non-farm payroll report on Friday,
to assess whether expectations for a more accommodative Federal Reserve policy are justified.
One in four swap market participants believe the Fed will cut rates by over 25 basis points this month.
Dollar Rises for Fifth Day Ahead of Key Economic Data
