Be careful this week
At the June 12 FED meeting (federal reserve meeting), if Jerome Powell announces that interest rates will either remain unchanged or cut, prices will rise again. The inflation rate will also be announced. The PPI index will be released on the 13th.
One thing to consider is that the FED has set 2 targets for lowering interest rates. When the unemployment rate reaches 5% and inflation reaches 2%, he will gradually lower his interest rate. On the 7th, the unemployment rate rose to 4% and current inflation is above 3%. It can be said that he has not yet reached the target he set, so he should consider whether he can keep the interest rate unchanged.
The FED has set the current interest rate at 5.5%. The market has already pre-positioned based on 5.5%. On the 12th They are sitting and waiting for the news. If the interest rate doesn't change at 5.5%, the price will go up a bit. If you drop 5.25%, prices will go up. There is a tendency to avoid shorts.
Personally, two days ago, the European Central Bank lowered the interest rate from 4% to 3.75%. The unemployment rate has risen to 4%. I can only fantasize that the interest rate can be lowered to 5.25% due to the decrease in inflation. It is likely to be wrong. Interest rates are likely to stay the same without lowering them.
This letter is just to give information. Not investment advice. Be yourself.
