Markets are entering a high-volatility zone as investors closely track the Federal Reserve’s next move. With inflation data showing mixed signals and economic growth cooling but not breaking, the Fed remains firmly data-dependent. Rate cuts are being priced cautiously, while any hint of prolonged higher rates could jolt risk assets.
💵 Dollar & Bonds:
The U.S. dollar is holding firm as Treasury yields remain elevated, reflecting uncertainty over the timing of rate cuts. A hawkish tone could strengthen DXY further, pressuring equities and crypto.
📉 Risk Assets (Stocks & Crypto):
Equities and cryptocurrencies are trading nervously. Any dovish surprise from the Fed could spark a relief rally, while a hawkish stance may trigger sharp pullbacks as liquidity expectations reset.
🔍 Key Levels to Watch:
CPI & Jobs data (Fed’s main triggers)
Powell’s tone in upcoming statements
Yield reaction on the 10Y Treasury
⚠️ Bottom Line:
Volatility is likely to stay elevated. Traders should stay flexible, manage risk tightly, and expect sharp moves around Fed commentary.
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