Fed: Growth upgrade delays rate cuts – Societe Generale

💡 DMK Insight

Strong US labor data is shifting growth forecasts, and here’s why that matters for traders: Societe Generale’s upgrade of the US growth outlook for 2026 signals a potential shift in economic momentum. For traders, this could mean a more favorable environment for equities and a stronger dollar, especially if the labor market continues to show resilience. Keep an eye on the S&P 500 and USD pairs, as positive sentiment could drive these assets higher. If labor data remains strong, we might see a bullish trend that could break key resistance levels in the coming months. However, there’s a flip side to consider. If growth expectations lead to tighter monetary policy sooner than anticipated, we could see volatility spike in both the forex and equity markets. Traders should monitor the upcoming Federal Reserve meetings closely, as any hints at rate hikes could shift market dynamics rapidly. Watch for key economic indicators, particularly employment figures and inflation data, as they will play a crucial role in shaping market sentiment moving forward.