Market Sector Scanner: Global Stocks at Record Highs as Fed Cut Bets Grow, Traders Focus on Powell This Week
Weaker U.S. CPI lifted rate cut hopes, sending U.S. and Japanese stocks to record highs, while stronger PPI showed tariff pressures. The RBA cut rates, U.K. and Japan GDP beat forecasts, and Trump extended the China tariff truce to November. Traders now await key U.S. data and Powell’s speech.
Weaker U.S. CPI data lifted hopes for a September Fed rate cut, while stronger PPI showed the impact of tariffs on American companies, but traders still expect easing next month. The rate cut outlook helped push U.S. and Japanese equities to record highs, while the Reserve Bank of Australia also lowered rates as expected. Stronger-than-forecast GDP in the U.K. and Japan supported both the pound and yen. In Washington, President Trump extended the tariff truce with China for another 90 days, delaying the next major deadline until November 10, 2025. Oil prices fell ahead of the Trump–Putin summit where they will discuss ending the war in Ukraine, with markets watching closely for the outcome.
Scan for opportunities on:
Key Events Calendar for August 18 – August 22
Market Sector Scanner
Forex Market
USD/JPY
Last Week Recap:
USD/JPY came under selling pressure last week as expectations of a U.S. interest rate cut encouraged traders to sell the dollar. At the same time, stronger Japanese GDP data increased speculation that Japan could move closer to raising interest rates. These factors pushed the pair lower, but strong support at key levels helped limit the decline.
Technical Picture:
The pair is trading around the middle of the Bollinger Bands, with the 10-day moving average pointing slightly lower. This suggests the market is still lacking clear direction and is likely to stay in a range for now.
Outlook This Week:
With the market balanced at current levels, range trading remains the best approach. Unless new data surprises, USD/JPY is expected to move sideways while traders wait for a stronger signal.
GBP/JPY
Last Week Recap:
GBP/JPY pushed higher last week, testing the key resistance level at 200. Expectations that U.S. rate cuts may come faster than those in the U.K., combined with stronger-than-expected U.K. GDP data, gave the pound support and helped drive the pair upward.
Technical Picture:
The upper Bollinger Band is now close, and along with the important resistance at 200, it is making further gains difficult. However, the 10-day moving average is still pointing higher and could provide support if prices pull back this week.
Outlook This Week:
The market continues to struggle to break above 200, suggesting that in the short term, selling strength below this level while buying near the 10-day moving average on dips looks like the best strategy.
EUR/USD
Last Week Recap:
The EUR/USD continued to move higher last week, supported by expectations that U.S. interest rates will be lowered. This reduced the gap between U.S. and European rates, giving the euro more strength.
Technical Picture:
Prices are now sitting in the middle of the Bollinger Bands, which shows the market is still range-bound. The 10-day moving average is pointing slightly higher, but momentum is limited, suggesting sideways trading is the most likely direction for now.
Outlook This Week:
Range trading continues to be the best strategy at current levels. However, if upcoming U.S. data is stronger than expected and pushes the market below the 10-day moving average, it could create a selling opportunity.
Equities
U.S. Stock Market
Last Week Recap:
The Nasdaq hit fresh record highs after lower-than-expected U.S. CPI data boosted expectations for further rate cuts. However, stronger-than-expected PPI data sparked some selling as traders grew cautious about the negative impact of U.S. tariffs.
Technical Picture:
The upper Bollinger Band continues to act as short-term resistance, but with both the bands and the 10-day moving average pointing higher, the overall technical picture remains positive.
Outlook:
Some profit-taking near current highs is still likely, but the broader uptrend and fundamental backdrop remain supportive. Buying on dips continues to be the preferred strategy.
Commodities
Gold
Last Week Recap:
Gold prices slipped last week as profit-taking at the top of the recent range and record highs in equities reduced safe-haven demand. This weakness came even as expectations for U.S. rate cuts continued, which remain supportive for gold in the broader picture.
Technical Picture:
The rejection at the upper Bollinger Band confirmed that gold is still trading in a range. The sideways 10-day moving average further supports the view of consolidation rather than a breakout.
Outlook This Week:
Gold continues to trade between $3,250 and $3,450, with strong support seen at the lower end of the range. Buying on dips remains the preferred strategy, as the market is expected to stay well supported at lower levels, creating opportunities for buyers this week.
The week ahead features several major events for traders, with the Federal Reserve’s July meeting minutes set to offer insight into how policymakers view inflation, growth, and the timing of future rate moves. U.S. rate cut expectations remain the main focus, while inflation data from the U.K. and Japan will be closely watched to gauge when the Bank of England might cut again and whether Japan could raise rates after strong GDP and its new trade deal with the U.S. Later in the week, the Jackson Hole Economic Policy Symposium will bring global central bankers and policymakers together to discuss the economic outlook, followed on Thursday by flash PMI reports from the U.S., Eurozone, U.K., and Japan, giving an early look at August activity. The week will conclude with Fed Chair Powell’s speech on Friday, where traders will be listening for fresh signals on the U.S. economy and interest rates.
