This week’s highlight will be the release of the minutes of the Federal Reserve’s (Fed) December meeting, in which the central bank decided to cut its benchmark rate by 25 basis points and signalled another rate cut in 2026.
💡 DMK Insight
The Fed’s December meeting minutes are set to drop, and they could shake up market sentiment. A 25 basis point cut is already priced in, but the mention of a potential cut in 2026 is what traders need to focus on. This signals a long-term dovish stance, which could lead to increased volatility in both the forex and crypto markets. If the minutes reveal more about the Fed’s outlook on inflation or economic growth, we might see a shift in risk appetite. Watch for how major pairs like EUR/USD and GBP/USD react, as they often mirror Fed sentiment. Additionally, crypto assets could respond to any hints of prolonged low rates, as they thrive in such environments. On the flip side, if the minutes suggest a more hawkish tone than expected, it could trigger a sell-off in risk assets. Traders should keep an eye on the immediate reaction post-release, particularly around key levels like 1.10 for EUR/USD and 1.25 for GBP/USD. These levels could provide entry or exit points depending on the market’s response.
📮 Takeaway
Monitor the Fed minutes closely; a dovish tone could boost risk assets, while a hawkish surprise might lead to sharp sell-offs, especially in forex pairs like EUR/USD and GBP/USD.





