Time has run out

Monica Kingsley Monicakingsley

S&P 500 rebounded Friday as called, right off the opening bell as expected. Breadth improved – have the bulls any reason to rejoice? Energy, tech and some real estate advancing, can that be enough? What about that weakness into the closing bell and VIX retreat? I talked bonds and dollar for directional clues in equities – they‘re a bit at odds as riskier bonds aren‘t rallying, but neither is the dollar even if rate cut odds went to less than a coin toss for Dec FOMC (significantly down from being baked in the cake only a monht ago).

Sure Waller wanted to cut in Jul, and the Fed is behind the curve in rate cutting as inflation isn‘t really raging following tariffs – and given the macroeconomic signs and the shape of the consumer or the job market, the Fed wouldn‘t be ill advised to support the economy, jobs and real estate… while looking the other way as regards inflation that didn‘t turn into a problem yet. Fed isn‘t yet capitulating to a dire necessity to cut.

Author

Monica Kingsley

Monicakingsley

Monica Kingsley is a trader and financial analyst serving countless investors and traders since Feb 2020.

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The GBP/USD pair gathers strength to near 1.3495 during the early European trading hours on Friday. The British Pound edges higher against the US Dollar as cooler-than-expected US consumer and producer price data have limited the Federal Reserve's room for further interest rate hikes. Traders will keep an eye on the US July Retail Sales report later on Friday.

EUR/USD looks apathetic around 1.1530

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Gold extends pullback from two-month high as Iran risks counter receding Fed hike bets

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Dollar dominance is cracking and the Fort Knox Gold question won’t go away

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