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2 February 2024,03:57

Weekly Outlook

Federal Reserve Maintains Interest Rates At 23-Year High, March Rate Cut Is Unlikely

2 February 2024, 03:57

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Monday, 5 Feb, 17:00 – US ISM Non-Manufacturing PMI (Jan)

In November, the US non-manufacturing PMI increased to 52.7 from 51.8, rebounding from a 5-month low. However, economists anticipate a decline in demand for services in the current quarter as consumers redirect a greater portion of their spending towards goods.

Tuesday, 6 Feb, 05:30 – RBA Interest Rate Decision (Feb)

Australia’s central bank maintained the interest rate at 4.35% in December, as widely expected. Following nearly two years of elevated and increasing inflation, the annual Consumer Price Index (CPI) has reached its peak at 4.1% by the end of 2023, signalling a noticeable deceleration. This suggests a reduced probability of further rate hikes in the current cycle, with the possibility of interest rate cuts in the second half of 2024.

Thursday, 8 Feb,15:30 – Initial Jobless Claims 

In December, US NFPincreased by 216,000, surpassing the market expectation of 170,000. The US labor market data holds significant importance in shaping the interest rate projections of the Fed. Traders are advised to anticipate the upcoming results.

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