August core CPI rose 0.3% month-over-month and the odds of a 25bp rate hike this week are now close to 90%. I expect the Fed to deliver the hike on Wednesday, but the real question is whether this is a one-off pause-guard move or the start of a longer hiking cycle. With inflation easing from its peak while core stays sticky at 0.3% MoM, I lean toward 'higher for longer' - at least one more hike this year before the Fed holds.
If the hike lands, the market has already priced it in, so could see a brief dip then a relief rally. Tech stocks are more exposed: elevated real rates compress valuation multiples hard. Gold should shine in this scenario since real yields stay low relative to inflation expectations - that is my bullish pick this week.
My trade plan: long BTC above recent range lows with a tight stop below 75,300, plus a small gold allocation as a hedge. I will not add leverage before the statement; the safest entry is after the initial volatility spike. What is your play for FOMC week? Let me know in the comments.
Not financial advice. DYOR.
#FedRateWatch #FOMC #Bitcoin #BinanceSquare
If the hike lands, the market has already priced it in, so could see a brief dip then a relief rally. Tech stocks are more exposed: elevated real rates compress valuation multiples hard. Gold should shine in this scenario since real yields stay low relative to inflation expectations - that is my bullish pick this week.
My trade plan: long BTC above recent range lows with a tight stop below 75,300, plus a small gold allocation as a hedge. I will not add leverage before the statement; the safest entry is after the initial volatility spike. What is your play for FOMC week? Let me know in the comments.
Not financial advice. DYOR.
#FedRateWatch #FOMC #Bitcoin #BinanceSquare