This article has been translated from English to Gen Z Slang.
Yo fam, markets definitely lost some steam on Monday after all that Powell hype vibes fizzled out, and peeps started cashing in their gains. 💸
Stocks across Europe and the U.S. took a minor L as traders got sketched out waiting for new U.S. deets and speeches from the central banks. Meanwhile, oil decided to flex up, and bitcoin did a little backslide toward a key level. 😬
Check out how all the major asset classes rolled in the latest trading sessions! 📈
Spill the Tea on Headlines:
- NZ retail sales for Q2 2025: 2.3% y/y (1.0% y/y vibe check; 0.7% y/y last); 0.5% q/q (-0.2% q/q vibe check; 0.8% q/q last)
- RBNZ thinking about giving lenders a chill pill by lowering capital requirements
- Japan's leading indicators index for June: 105.6 (106.1 expected; 104.8 last call)
- Swiss non-farm payrolls for Q2 2025: 5.53M (5.5M predicted; 5.51M last mark)
- Kazaks from ECB chillin’ saying current vibes are solid as inflation gets in the zone and further cuts look sus
- French PM Bayrou gonna flex for a vote of confidence over budget tight-fistedness on Sep 8
- Germany's IfO business mood for August: 89.0 (87.0 vibes; 88.6 last)
- U.S. building permits final for July: -2.2% m/m to 1.36M pads (-2.8% m/m vibes; -0.1% m/m last)
- U.S. Chicago Fed national activity index for July: -0.19 (-0.2 predicted; -0.1 past)
- U.S. new home sales for July: -0.6% m/m to 0.65M units (-1.1% m/m predicted; 0.6% m/m last)
- U.S. Dallas Fed manufacturing index for August: -1.8 (0.2 vibes; 0.9 before)
Major Market Glow-Up (or Not):
Dollar Index, Gold, S&P 500, Oil, U.S. 10-yr Yield, Bitcoin Overlay Chart by TradingView
Major risk assets did a lil’ dip on Monday as traders were processing that Friday Powell rush. European stocks saw some slack, with UK chillin’ 'cause of the bank holiday. The pan-European Stoxx 600 slid 0.44% 'cause peeps were waiting on some crucial inflation stats and figuring how potential rate cuts might play out. 😬
US stocks did a backslide too, with the S&P 500 dropping 0.43% and the Dow Jones down by 0.77% after hittin' those high notes on Friday. Nasdaq, our tech bae, managed to keep it cool with just a 0.22% drop, keeping an eye on Nvidia’s earnings coming up. 💻
Gold played it lowkey near $3,365 even with a strong dollar, cause everyone’s got their hopes up for rate cuts. The 10-year Treasury yield basically moved up 1.9 points to 4.28% as bond traders took a sec to think about the Fed’s future moves. 🔍
Oil was feeling itself with nearly a 2% jump to $64.75, probably 'cause the Russia-Ukraine peace talks went nowhere and Trump's throwing shade with sanctions again. Bitcoin, on the other hand, wasn’t vibin’ well, stumbling from $113,000 to $110,000, threatening its 100-day moving average for the first time since April. Pay attention, crypto peeps! ⚡️
Dollar Dance: U.S. Dollar vs. Majors:
Overlay of USD vs. Majors Chart by TradingView
The dollar pulled a comeback move on Monday, bouncing back after Friday’s post-Jackson Hole dip. 💪 It started picking up vibes in Asia with the yen acting weak sauce as USD/JPY climbed above the averages. Profit-takers showed up before London opened, putting some pressure, but the dollar found support in the thin holiday feels while the UK was out. 🤷♂️
In Europe, the dollar hung around session highs as EUR/USD dropped a bit, with everyone keeping it cautious. It took a slight dip before the US showed up but bounced back when July new home sales smashed expectations, with 652,000 homes instead of 630,000 expected. Dollar bulls are back in the groove! 🕺
The dollar stayed feeling itself through the New York afternoon, ultimately closing higher against all major currencies. The euro took a hit dropping 0.78%, the yen slipped 0.50%, and sterling fell 0.48%, probs 'cause of the UK holiday. Commodity currencies were slightly better off, with CAD dipping just 0.20% while AUD and NZD limited their downwards to 0.08% and 0.29%, respectively. 🌟
What’s Poppin' on the Econ Calendar Next
- France consumer confidence for August at 6:45 am GMT
- Canada manufacturing sales prel for July at 12:30 pm GMT
- U.S. durable goods orders for July at 12:30 pm GMT
- U.S. Fed Barkin speech at 12:30 pm GMT
- U.S. S&P/Case-Shiller home price for June at 1:00 pm GMT
- U.S. house price index for June at 1:00 pm GMT
- U.S. CB consumer confidence for August at 2:00 pm GMT
- U.S. Richmond Fed manufacturing index for August at 2:00 pm GMT
- U.S. Dallas Fed services index for August at 2:30 pm GMT
- U.K. BOE member Mann speech at 4:00 pm GMT
- Canada BOC Gov. Macklem speech at 6:45 pm GMT
- U.S. API crude oil stock change for August 22 at 8:30 pm GMT
The trading day’s got some mellow vibes going on today! 😌
Traders are scouting for France’s consumer confidence to get a vibe check on the euro, but the real tea is gonna spill with U.S. data and Fed talk later. Keep an eye on those durable goods, home prices, and consumer confidence 'cause they might throw some spice into USD pairs. Plus, BOE’s Mann and BOC’s Macklem be dropping hints before the day’s over. 🕵️♂️
As always, keep your ear to the ground for global trade squad drama and geopolitics that could shake up the markets. Stay woke, and don’t sleep on peeping our Forex Correlation Calculator when doing your trades! 🚀
