Thread: Will the US Economy face further setbacks?

Gold: The 4 hour chart implies on an upcoming bearish trend as the Slow Stochastic is crossed at 78 and has a negative slope, however we need to pay attention to the current 4 hour bar, when a positive bar may indicate an upcoming bullish trend and negative bar will imply on a range trading. Forex traders need to be aware during the next 4 hours where the market is headed and to take action.

The euro hits a two-week high versus the dollar today as euro zone service sector data are stronger than expected contrasted with regional U.S. factory activity.

The euro zone services PMI rose to 52.3 in February from 50.6 the previous month, moving away from the 50 mark between contraction and growth and further dampening expectations of near-term interest rate cuts.

That was in contrast to Thursday's Philadelphia Fed's business index which fell to minus 24 in February, showing the deepest contraction in activity since 2001 and much worse than forecasts...

U.S. markets are now fully pricing in another 50 basis point cut at FED's next meeting in March to 2.50 percent and factor in a small chance of an even bigger 75 basis points.

That would add to the unsual and aggressive 125 basis points cut in January as the Fed tries to fend off a recession... In contrast there is no sign of an early rate cut from the ECB...

Global indicators are mostly negative for North American stock markets after the Dow Jones industrial average fell more than 140 points yesterday. So do not expect miracles today.

At the end of a four-day trading week, Wall Street futures are little changed as investors, in the absence of scheduled economic reports for guidance are expected to make few moves before the weekend.