Fed: No cuts view strengthened on data – Nordea

💡 DMK Insight

No interest rate cuts from the Fed? That’s a big deal for traders right now. With strong US growth and a tight labor market, the Fed’s stance indicates they’re not ready to ease monetary policy. This could keep the Dollar under pressure, especially with rising commodity prices. Traders should watch how this affects risk sentiment in equities and commodities. A stronger Dollar typically weighs on gold and oil prices, so if the Dollar continues to weaken, we might see a bullish trend in those assets. On the flip side, if any unexpected economic data comes out that suggests a slowdown, it could shift the narrative quickly, leading to volatility. Keep an eye on key economic releases and the Dollar index as indicators of market direction. For now, the focus should be on how these macroeconomic factors play out over the next few weeks, particularly as we approach the next Fed meeting. Watch for any signs of a shift in labor market data or inflation metrics, as they could signal a change in the Fed’s approach.