It’s a big week to round off August with important inflation data from around the globe, as well as the results of Nvidia, the tech megacap chipmaker. Markets will also be digesting Fed Chair Powell’s speech at Jackson Hole last Friday. He looks to have now finally pivoted 100% towards rate cuts with the size of the move in September, potentially squarely down to the non-farm payrolls report on the first Friday of next month.

“The time has come for policy to adjust”, Powell told other central bankers and policymakers, with seemingly any rise in the unemployment rate and a low headline add triggering a bigger 50bps rate reduction. This Friday’s sees the Fed’s favoured inflation gauge, which is also likely to rubber-stamp the direction of travel in rates. Money markets price in around 100bps of policy easing for this year, with around 33bps for the 18 September FOMC meeting.

The dollar fell for a fifth straight week and is near to December low at 100.61. The 200-week SMA sits just below here at 100.30. Gold again looks good for more upside as it holds above $2500, while stocks are eyeing up all-time highs. Whether they make fresh peaks is likely to be down to Nvidia’s earnings report that it could serve as a “reality check” for the broader market. Anything less than another beat and raise may prove to be a disappointment which could bruise the recent bullish momentum in risk assets.