US economic data came out as expected, how will this affect the market.

PCE Price Index data as well as Initial Jobless Claims for the US came in as expected, which was solidly received by the market. Of course we have seen a correction, and now traders are waiting for the market to decide where it will go. It is possible to see a return to its normal direction or a continuation of the trend, after the correction that has formed recently.

The big market catalyst that traders are eyeing is the Fed meeting in September. Tomorrow’s payroll data will be extremely relevant to this meeting. Without a delay in wages, a “soft” landing is impossible.

U.S. stock futures rose while bond yields fell as traders awaited U.S. jobs and wages data that could provide clues to the Federal Reserve’s next steps.

Traders end the month with mixed economic data and weaker markets in China. Thursday’s moves come as stocks and bonds pared their losses since August last week.

US jobless numbers fell well below economists’ expectations, with the data coming in at 228,000, compared to an expected increase from last month’s report (232,000). Nonfarm payrolls on Friday are expected to have risen to 170,000 in August from 187,000 in July, while growth in hourly wages is expected to slow slightly. Weaker-than-expected economic data on Wednesday supported expectations for the Fed to ease rate hikes.

Eurozone inflation stopped slowing in August, according to data out today. That puts European Central Bank officials in a quandary as they weigh the possibility of tighter policy against signs of slowing growth.

Traders believe that the Euro-Dollar cross looks volatile, although it recently successfully tested the bottom of the channel it is still in.

• We have a breakout of a smaller corrective channel that coincides with horizontal Support
• Bull trend formed in development
• Sequential prints 3, which signals the start of a new bullish cycle
• DeMarker Oscillator is neutral but has narrowly bounced back from the OverSold level.