Have you ever wondered how silence can be so loud? That’s exactly how this week was on the financial markets. The vast majority of the days last week felt somewhat sluggish, lacking the loud events that could move the markets. But within this calm lay emotions – like in an old film noir, where silence can be more expressive than loud screams.
The week began on Monday without any significant macroeconomic data. Investors focused on technical analysis and sentiment, which remained at a level of moderate greed. Although the start of the week did not bring spectacular changes, the tension surrounding inflation expectations was still palpable. Uncertainty led investors to be willing to take risks, but with a degree of caution.
Wednesday brought inflation data, with the CPI y/y at 2.8%, slightly below the forecasted 3.0%. This was a signal that inflation may have eased somewhat, raising hopes for stabilization. Investors began to wonder if this means the Fed might slightly loosen its monetary policy. However, it is still too early for definitive conclusions. The market reacted cautiously, without any sharp movements.
Thursday brought unexpected news from across the ocean – the Australian labor market showed its weaker side, with Employment Change at -18.6 thousand compared to the expected 16.7 thousand and an increase in the unemployment rate to 4.5%. This was a blow to the Australian dollar, which lost value. Investors began to look for more stable options, which could have influenced global capital flows.
At the end of the week, despite the lack of key events, the markets were restless. The greed sentiment dropped to 59 points, indicating increasing uncertainty among investors. As we approach the next FOMC meeting, everyone is wondering whether the Fed will maintain its current policy or decide to make any moves. Cryptocurrencies, as always, do not recognize weekends, so their market may still heat up in the coming days.
