Expectations of Fed interest rate cuts continue to fall, US dollar rises on Thursday Economic data suppresses expectations of a 50 point interest rate cut, but geopolitical situation still provides support

16 Aug, 2024

On Thursday (August 15th), strong US economic data led traders to reduce their bets on the Federal Reserve's interest rate cuts.

On Thursday (August 15th), strong US economic data led traders to reduce their bets on the Federal Reserve's interest rate cuts. The US dollar index rose strongly after retail sales data was released, reaching the 103 level and ultimately closing up 0.439% at 103.05. The yield of US Treasury bonds surged during the trading session, with the benchmark 10-year yield closing at 3.915%; The two-year US Treasury yield, which is more sensitive to monetary policy, closed at 4.101%.

 

On Thursday (August 15th), gold prices fluctuated and rose to a high near the 2470 mark during trading. However, due to strong initial and "scary" data, US bond yields rose, and gold prices fell to around $2432 at one point. Subsequently, they were supported by bargain hunting and safe haven buying, closing at $2456.35 per ounce. This trading day focuses on the initial value of the University of Michigan consumer confidence index in August, the initial value of the annual total number of construction permits in July, and the annual total number of new housing starts in July in the United States. Pay attention to the speeches made by officials of the Federal Reserve and news related to geographical situation.

 

On Thursday (August 15th), international oil prices rebounded as economic data eased concerns about a recession in the world's largest economy, supporting confidence in the outlook for crude oil demand. WTI crude oil ultimately closed up 1.17% at $78.05 per barrel; Brent crude oil ultimately closed up 1.18% at $80.92 per barrel.

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