Fed's Daly: Need to keep an open mind about further rate cuts

💡 DMK Insight

Fed’s Daly hinting at potential rate cuts could shake up markets—here’s why that matters now: Traders should pay close attention to this statement as it signals a shift in the Fed’s stance, which could lead to increased volatility in both the forex and crypto markets. If the Fed does decide to cut rates, we could see a weakening of the dollar, making USD-denominated assets more attractive. This could lead to a rally in cryptocurrencies as investors seek higher returns. Watch for how this sentiment affects the DXY index and major currency pairs like EUR/USD and GBP/USD in the coming days. On the flip side, if the market overreacts to Daly’s comments, we might see a short-term spike in volatility that could create buying opportunities for savvy traders. Keep an eye on key support and resistance levels in these pairs, especially if we approach significant technical thresholds. The immediate focus should be on any upcoming Fed meetings or economic data releases that could further clarify their direction.