This article has been translated from English to Gen Z Slang.
Markets caught a vibe on Wednesday thanks to the Fed maybe vibing with a rate cut, after Bessent threw out a savage hint of a 50 bps cut in September. 📉
Stocks be doin' the most, hitting lit new highs, while the dollar took an L, oil slid faster than your DMs after an oversupply alert, and bitcoin YOLO’d to new records. 💎🙌
Buckle up fam, here's some tea you might've missed in the last trading sessions! 🔥
Main Tea:
- Japan's like, "Look at us, the Tankan index for August: 9.0, above that 7.0 forecast and previous."
- Japan PPI for July: 2.6% y/y (NAILED it on the 2.6% forecast; a lil’ dip from last year’s 2.9%)
- Aussie wage vibes for Q2 2025: 3.4% y/y (y’all really out here hitting that 3.3% forecast); 0.8% q/q (perfect alignment with expectations, lowkey beating last year’s 0.9%)
- US Treasury Sec Bessent spilled the beans: a 50-bps Fed rate cut in Sept could be on the menu 👀
- Germany holding steady with July inflation vibes: 2.0% y/y (on point with forecast); 0.3% m/m (consistent much?)
- Japan machine tool orders for July: an impressive 3.6% y/y (everyone expecting 0.0%, y’all tried it!)
- IEA saying "Surprise!" with record 2026 oil glut ‘cause OPEC+ be producing like it’s going outta style 😅
- U.S. MBA mortgage apps Aug 8, 2025: up at 10.9% (doing numbers on that 3.1% from before)
- U.S. EIA crude oil stock change for Aug 8, 2025: coming in hot at 3.04M (-3.03M previous drop)
- Prez Trump playing The Bachelor with 11 candidates for Fed chair 💼💔
- BOC minutes: they thought about cuttin’ rates in July but said nah, let’s wait. 🕰️
- Chi-town’s Fed Prez Goolsbee: Fall meetings are “live AF,” ready for rate-cut party if inflation/chill labor data comes in
- ATL Fed Prez Bostic cool with one rate cut in 2025 if jobs stay gucci 🧢
- U.K. RICS house price vibes for July: -13.0% (ouch, well below -8.0% forecast and last month’s -7.0%)
Market Moves: It’s Lit
Dollar Index, Gold, S&P 500, Oil, U.S. 10-yr Yield, Bitcoin Overlay Chart by TradingView
The Fed cut buzz had markets partying all week, and Wednesday was no different, after Bessent suggested a swoopy 50 basis point slash was in the cards 'cause of some meh job revisions.
In Euro land, the Stoxx 600 went up by 0.54%, while Germany’s DAX and France’s CAC 40 flexed with 0.67% and 0.66% gains respectively, pumped by smoothed out trade drama before the Trump-Putin fit check Friday. Wall Street was on fleek too with S&P 500 at a cool 0.32% up, Nasdaq creeping up by 0.14%, and the Dow blasting 1.04% with healthcare stonks doing their thing. 📈
Treasury yields hit the brakes hard, like 5.5 basis points harder on the 10-year to 4.24%, ‘cause everyone was pricing in that Sept rate cut. Gold got a little bit of a glow-up to $3,355 with the dollar on a leash, dropping yields, and everyone's risk appetite on the up. 🌟
Crude oil though – yeah, it didn’t vibe as much, dipping by 0.87% to $62.75 as IEA warned ‘bout too much oil. On the flip side, Bitcoin was living its best life zooming past $123,500 – flexing a fresh all-time high, breaking last month’s ceiling as equities and risk appetite made zero chill moves. 🚀💸
FX Vibes: USD vs. The Squad:
Overlay of USD vs. Majors Chart by TradingView
The dollar was doing some side quests during Asian hours, trying to snatch a dub against the yen, until Euro vibes said, “Nah fam!” 🎢 With traders chewing on Tuesday’s chill CPI data and rising Euro inflation stats to 3.1%, the buck stood pressure. Sterling, on the flip, was owning the G10 game, gaining 0.5%, almost brushing three-week highs with the risk appetite booming. 🔥
Bessent's 50-basis-point rate cut word drop had dollar taking a nosedive midday, shedding 0.25% and hitting three-week lows. Y’all, markets basically locked in that September cut, dragging the dollar to five-day lows against the yen after trying to post up above 148.00. Meanwhile, the Aussie dollar got its own glow-up with Q2 wage growth hitting a spicy 3.4% y/y, matching Q1’s gas while cooling peeps expecting rate slashes. 💪
When London threw the shades at closing, people started cashing out with mixed Fed tones floating ‘round. Bostic’s cautious signal and Goolsbee’s meh vibe left the dollar reeling before closing weaker versus all major currencies.
Poppin' with the Upcoming Economic Calendar
- U.K. GDP vibes for June and Q2 2025 at 6:00 am GMT
- U.K. industrial production for June at 6:00 am GMT
- U.K. manufacturing production for June at 6:00 am GMT
- U.K. balance of trade for June at 6:00 am GMT
- U.K. goods trade balance for June at 6:00 am GMT
- Swiss producer & import prices for July at 6:30 am GMT
- France inflation rate final for July at 6:45 am GMT
- U.K. labour productivity for June 30 at 8:30 am GMT
- Euro Area GDP growth rate 2nd est for Q2 2025 at 9:00 am GMT
- Euro Area employment change prel for Q2 2025 at 9:00 am GMT
- Euro Area industrial production for June at 9:00 am GMT
- U.K. NIESR monthly GDP tracker for July at 12:00 pm GMT
- U.S. initial jobless claims for August 9 at 12:30 pm GMT
- U.S. PPI reports for July at 12:30 pm GMT
- U.S. Fed Barkin speech at 6:00 pm GMT
- U.S. Fed balance sheet for August 13 at 8:30 pm GMT
Hold onto your hats, 'cause London's got a FLOOD of U.K. data coming in hot – GDP, production stats, trade balances – all gonna make Sterling dance. 🕺 Next up, Eurozone GDP and industrial output bringing the heat before the U.S. clock’s in.
The U.S. gets spicy with PPI and jobless claims, both major players in shaping rate cut suspense, and USD pairs could witness wild moves. 🎢
And y’all, don’t sleep on global trade tea or geopolitical drama that could be a mood changer. Stay chill and make sure to peep our Forex Correlation Calculator if you’re getting into trades. 💹💥
