Macro news
Focus on US personal consumption expenditures (PCE) data: Investors are awaiting July PCE inflation figures, the Federal Reserve’s (Fed) preferred inflation gauge, with markets now pricing in an 85% probability of a September rate cut.
US dollar softens on Fed outlook: The dollar is on track for a 2% monthly decline as expectations for rate cuts build and concerns grow over Fed independence amid Trump’s push to remove Governor Lisa Cook.
DAX 40 weighs on support
The DAX 40 has been gradually coming off its 24,536 August high and hovers above this week’s lows at 24,206-to-24,198. Together with the 22 and 28 of July as well as 12 August lows at 23,942-to-23,922 it offers support.
As long as it holds, a recovery towards the 24,300 region may ensue but failure at 23,922 on a daily chart closing basis could lead to the early August low at 23,381 being revisited.