After the U.S. PCE inflation data was released, the U.S. dollar surged strongly, posting its largest single-day gain in nearly four weeks. It almost fully reversed all the losses incurred after last week’s unexpected announcement by Treasury Secretary Scott Bessent that he would support the bond market.
Stronger inflation data has prompted the market to start repricing expectations for additional Fed rate hikes this year. The earlier market speculation about Fed rate cuts went too far, and now the direction is starting to shift again. Global markets will once again need to adapt to a high interest-rate environment.
Volatility in the crypto market has also recently increased noticeably. It’s still important to pay close attention to shifts in macro conditions, and to manage your position size so you don’t blindly chase after rising prices.
#宏观经济 #美联储 #美元
Stronger inflation data has prompted the market to start repricing expectations for additional Fed rate hikes this year. The earlier market speculation about Fed rate cuts went too far, and now the direction is starting to shift again. Global markets will once again need to adapt to a high interest-rate environment.
Volatility in the crypto market has also recently increased noticeably. It’s still important to pay close attention to shifts in macro conditions, and to manage your position size so you don’t blindly chase after rising prices.
#宏观经济 #美联储 #美元