- US CPI is expected to decline from 2.9% to 2.6% YoY in August, while core CPI is projected to remain at 3.2%.
- Last week’s NFP report revealed the economy added over 142K employees to the workforce but missed consensus of 160K. However the dip in the Unemployment Rate lent a lifeline to the Greenback.
- Last Friday, Fed officials were dovish. New York Fed President John Williams said that cutting rates will help keep the labor market balanced, while Governor Christopher Waller said that “the time has come” to ease policy.
- Chicago Fed President Austan Goolsbee was dovish, saying policymakers have an “overwhelming” consensus to reduce borrowing costs.
- It is worth noting that Fed officials entered their blackout period ahead of the Federal Open Market Committee (FOMC) monetary policy meeting.
- Data from the Chicago Board of Trade (CBOT) indicates that the Fed is anticipated to cut at least 104.5 basis points (bps) this year, based on the fed funds rate futures contract for December 2024.
- China's central bank pauses Gold purchases for a fourth month in August.
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