Important Notice for Traders!
This Wednesday brings CPI data, the Federal funds rate decision, and the FOMC meeting.
It’s almost certain that the FED funds rate will stay at 5.5%, which is already anticipated by the market. CPI data is expected to align with predictions, possibly showing a 0.1% Y/Y decrease.
The FOMC meeting will likely indicate that further rate adjustments are needed, potentially causing volatility but essentially suggesting the FED needs more data for future decisions.
For short-term traders, it’s advisable to wait until the Fed rates are announced. It’s not just the rate decision that will impact the market, but also the accompanying speech from the Fed Chairman. The insights from this speech can significantly influence market sentiment.
Therefore, it’s best to wait and see what the Fed Chairman has to say and then build positions based on the broader market reactions. This is particularly crucial for those involved in futures and derivatives trading.
The recent jobs data, which impacted crypto prices, makes a rate cut in July highly unlikely and suggests we might see only one rate cut this year instead of two. For those unfamiliar with interest rates, a decrease in rates would generally be positive for crypto, as it would lead to more investment in the market.
