Powell sinks the dollar. What will the week bring?
In financial markets, the week began in the shadow of three topics: signals of a possible interest rate cut in the US, expected quarterly results from Nvidia, and the stalemate in talks regarding the war in Ukraine. During Monday's "Week on the Markets" webinar, Michał Stajniak pointed out that these issues may determine investor sentiment in the coming days.
Powell sinks the dollar
Jerome Powell, chairman FedDuring his speech in Jackson Hole, he admitted that the US labor market is weakening, paving the way for monetary policy adjustments. Investors now estimate the probability of a September interest rate cut at 85%, although the final decision will depend on subsequent inflation and labor market data.
Markets are also awaiting Nvidia's earnings results on Wednesday. The company remains a key beneficiary of the growing importance of artificial intelligence, but investors will be closely monitoring sales in China and margins, which have come under pressure in recent months. Any surprise, positive or negative, could translate into strong movements not only in the company's shares but also in the broader technology market.
Geopolitics remains in the background. Talks regarding a potential peace agreement in Ukraine have stalled, and Russia's demands are unacceptable to the West. This means continued uncertainty in the oil and gas markets. In Poland, an additional source of tension for investors is the discussion about a new tax on the banking sector – a key factor in the WIG20 index.
In today's webinar, the economist XTB Michał Stajniak will discuss the following topics:
- Will the Fed cut rates in September?
- What does Nvidia need to show in Wednesday's results for the market to react positively?
- How are peace talks in Ukraine changing the landscape of the raw materials market?
In addition, due to the very dynamic global situation, additional video reports will be made available.
About the host
Michał Stajniak - Raw Material Market Analyst in XTB. It places particular emphasis on the linkages between the behavior of commodity prices and the currencies of economies heavily dependent on exports of commodities such as oil, iron ore, gold and powdered milk. He is the author of frequent comments comparing commodity price indices with currency pairs such as AUDUSD, NZDUSD, USDCAD, USDNOK, or EURNOK. He represents XTB in the media (including TVN24 BIS, Polsat News, TVP Info, Bankier TV or Onet TV) and is the author of articles in the financial press such as Parkiet, Puls Biznesu and Dziennik Gazeta Prawna. He is a practitioner of the stock market and the derivative market. In his approach, he values fundamental analysis above all, but often uses Fibonacci levels to determine the demand and supply zones needed in a Price Action strategy. A graduate of Quantitative Methods in Economics and Information Systems at the Warsaw School of Economics.
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