Magnificent Person, I wanted to provide a mid-week market update as the markets seem to be in a state of confusion. Watch Fake News! Bloomberg had a headline earlier this week stating that "The Fed will cut rates by 25 bps next week and stop reducing the balance of sheet," but it disappeared shortly after. It's unbelievable how fake news is being used to scam others in the market. Despite this, the CPI numbers may change my mind as the Fed could pause now. However, I still believe that these numbers are not entirely accurate and may have a revision next month. Market Corrections Happening: As of today, the DXY is set to bounce off the support zone, and there may be some interesting price action after a hotter than expected CPI is shown in the chart. It's important to note that despite the recent news of banks mismanagement, the FED's key focus is still on inflation. Inflation is currently at 6%, with airlines topping the charts at 26% and energy at 12%, while used vehicles are at -13.6% and gasoline at -2%. You can see a breakdown of these numbers in the attached image. |
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