S&P 500 holds near highs, but Fed cuts could spark short-term volatility before medium-term bullish momentum resumes.
The Dollar Index is sliding again, now sitting near 97.50 after failing to hold above key support. Price continues to grind lower, signaling the market’s bias remains bearish until fresh catalysts arrive.
Despite sticky inflation, the dollar is weighed down by weakening labor data. Normally, persistent inflation would argue for the Fed to hold rates higher for longer. But with cracks showing in the labor market, the Fed risks over-tightening if they wait too long. Powell has made it clear: jobs data is now the top priority.
The dollar is stuck between two forces: inflation that’s still sticky and a labor market that looks increasingly fragile. The next round of data — starting today — will decide which one drives the Fed’s hand and the dollar’s next big move.
S&P 500 holds near highs, but Fed cuts could spark short-term volatility before medium-term bullish momentum resumes.
DXY holds near support as traders await FOMC, with three cuts priced and data setting the next move.
Sterling stalls at resistance as soft UK growth data shifts attention to next week’s BoE meeting and balance sheet risks.
