{"id":664554,"date":"2025-08-11T12:25:36","date_gmt":"2025-08-11T10:25:36","guid":{"rendered":"https:\/\/ftmo.com\/?p=664554"},"modified":"2025-08-11T15:31:26","modified_gmt":"2025-08-11T13:31:26","slug":"trading-week-ahead-will-this-be-the-feds-turning-point","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/trading-week-ahead-will-this-be-the-feds-turning-point\/","title":{"rendered":"Trading Week Ahead: Will This Be the Fed\u2019s Turning Point?"},"content":{"rendered":"
The week ahead promises heightened volatility for US markets as three major macroeconomic releases take centre stage: Consumer Price Index (CPI)<\/strong>, Producer Price Index (PPI),<\/strong> and Retail Sales<\/strong>. Each will offer a fresh gauge of the economy\u2019s health and could significantly reshape expectations for Federal Reserve policy in the second half of the year. \u2022 US CPI<\/strong> \u2022 US PPI<\/strong> \u2022 US Retail Sales<\/strong>
\n<\/em>Which of these events will deliver the biggest shock to the markets?<\/strong><\/em><\/p>\n
\nInflation remains the single most influential driver of Federal Reserve policy, and this week\u2019s CPI release will be in sharp focus. Markets are looking for a cooling in monthly price growth from 0.3% to 0.2%, a shift that could tilt sentiment towards earlier rate cuts and soften the US dollar. However, a hotter reading would reinforce the Fed\u2019s hawkish resolve, lifting Treasury yields and putting equities under pressure.<\/p>\n
\nProducer prices are set to break out of last month\u2019s stagnation, with forecasts pointing to an increase from 0.0% to 0.2%. This rebound would signal renewed cost pressures at the production level, potentially feeding through to consumer prices in the months ahead. A stronger print would strengthen the dollar\u2019s footing, while a softer number could encourage a more dovish market outlook.<\/p>\n
\nConsumer spending, the heartbeat of the US economy, is expected to lose a touch of momentum, easing from 0.6% growth last month to 0.5%. If retail sellers prove more resilient than expected, the data could embolden the Fed to keep rates elevated for longer. Conversely, weaker figures would hint at slowing demand, reviving expectations for policy easing later this year.<\/p>\n