This week we have CPI and US Fed funds rate announcements. Most probably we don't get a rate cut for now (as the market expects). However, I think this week the announcements are coming out with a more dovish tone.
Let's see what happens . . .
If the CPI number come out lower or equal to the expectations and the Fed Chair Powell signals 1 or 2 rate cuts for this year. I believe we can expect the yellow scenario. Otherwise, we can expect the red scenario happens in short term.
Let's see what happens . . .
If the CPI number come out lower or equal to the expectations and the Fed Chair Powell signals 1 or 2 rate cuts for this year. I believe we can expect the yellow scenario. Otherwise, we can expect the red scenario happens in short term.
Trade closed: target reached
The CPI number came lower than expected and it strengthen the rate cut expectations by the US Fed. As a result the DXY and US10Y had a sharp decline and DXY is showing that it wants to follow the yellow scenario. Let's see what does the FOMC meeting have for us . . .
We can expect a dovish tone in FOMC meeting today. At the time of writing this update the market sees a 60% chance of the first rate cut this September.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.