Market Sunday update:
Expecting a volatile week ahead since we have FOMC on Wednesday. However, a difficult week because they can easily play with the market sentiment.
The market expects the FED to keep rates unchanged and a signal for a rate cut in September.
Let's analyseđ§ľ:
This is the main scenario that I mentioned 3 Sunday updates ago (July 7th):
⢠Unemployment up
⢠Inflation down
⢠Market will price-in a potential rate cut in September and BTC goes up in anticipation right after CPI.
This has happened. Now, a new potential intention arises.
The FED is under so much pressure right now, from the media, from economists, and from the market to announce a rate cut in September.
But knowing Jerome Powell, and having 2 CPI and 2 NFP datas ahead before September's FOMC, will he really let the market get hyped up? Doubt it.
I imagine something such as:
"We'll cut rates when we make sure inflation is moving back down to 2% and for that, we must stay data-dependent. We need to see the coming data from the next 2 months"
If so, markets could experience volatility due to investors' disappointment.
#Bitcoin #Binance #btc #SEC #Fed
