Ready for Wednesday? Volatility is coming.
Tomorrow, Wednesday 11th, at 8am and 9am (UTC -3) very important data will be published in the United States, including:
Mortgage Application Index
Mortgage market index
Core CPI (monthly and annual)
Real income of workers
Inter alia.
Why are they so important?
Based on the results of these indices, a decision on interest rate cuts will be made in mid-September.
Implications:
The market already knows that there will be a cut, but we have a problem:
If it is 0.25%, it means that the projections on inflation and the slowdown of the economy are going as expected.
If the rate is 0.50%, the market is seeing a bad signal. On the one hand, rates would fall, but the important thing is the reason. If the rate falls by that proportion, it means that the market in general is suffering negative effects and economic contractions, anticipating worse falls.
Tomorrow's data will give us a clue as to the "health" of the economy, which the market is speculating about.
We must be aware of the results and operate with caution. We must not open positions rashly or lose our composure.
During these announcements there are usually abrupt moves in both directions, shaking up the overall market, so keep your hands up and stay calm.
The most important data of this day:
$BTC remains above 57,000, almost reaching 58.
Total market capitalization has recovered its $2 trillion level.
After a tragic week, ETFs are starting to see capital inflows this week.
The fear and greed index is approaching 50, neutral zone.
Could this rally be a bull trap prior to the announcements or is it that the market already knows the outcome and anticipated it? Let me know your opinion in the comments.
Crypto Citizen says goodbye! Great week and great earnings.
