Exciting week ahead
The past week was red with the Israel-Iran conflict eating all the gains we saw up until mid week. But good news was that inflation in the US was not as high as feared, tariffs had obviously not that much impact so far. This gives the Fed some room to finally cutting rates further. ECB is already at 2% while in the US we still see more than 4%.
Trump has increased pressure on Powell with asking for a one full point which would be huge. I don’t see that coming and I don’t see the Fed lowering coming week, meeting is Wednesday. But what I could imagine is Powell hinting that a rate cut is coming later this summer. Unemployment rate is rising slowly but steadily and this is also something they have to keep under control.
The coming week could see some bullish momemtum if the Fed surprises with some dovish talk. We will see.