QCP Capital noted that U.S. stocks hit record highs and Asian markets performed well due to expectations of an upcoming interest rate cut and a soft landing for the economy, Wu said.
Despite the optimism, the S&P 500 options market showed signs of nervousness, anticipating a 1% move in Powell’s upcoming Jackson Hole speech.
Crypto market sentiment is depressed, and the funding rate of BTC perpetual contracts has fallen to its lowest level since 2022.
Watch for a potential unwinding of JPY/USD carry trades, which could trigger a market sell-off.
