Part 4/9:
Recent readings on consumer price index (CPI) and producer price index (PPI) indicate a cooling of inflation, with both metrics coming in lower than expected. This data offers a glimmer of hope for investors looking for signals of recovery. The consensus among informed analysts previously suggested minimal rate cuts; however, prevailing winds now indicate a more optimistic outlook, with predictions of multiple cuts coming into play as inflation appears to stabilize.
Moreover, the strength of the US dollar has previously indicated reduced liquidity in the market. However, as the dollar shows signs of weakening, the opposite effect—more liquidity—should support prices in the coming months.