S&P 500 holds near highs, but Fed cuts could spark short-term volatility before medium-term bullish momentum resumes.
The dollar index is trading around 97.4, still sitting near recent lows and struggling to hold above support. Technically, momentum looks heavy, with downside attempts finding limited follow-through as markets wait for the next big driver.
That driver comes this week — Retail Sales and Housing Starts on deck, but all eyes are on the FOMC. Traders will get the full package: economic projections, Powell’s press conference, and the interest rate decision itself.
The market has already priced in three rate cuts for this year, which explains why downside reactions have been muted. That said, surprises matter. A larger-than-expected cut could send the dollar sliding, while a cautious Fed could spark knee-jerk buying.
Looking forward, the real tell will be in the data. Retail sales, housing, and especially labor remain the compass for where the Fed goes next — and by extension, where the dollar trades.
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.
