Markets have been muted this week as all the focus has been on the FOMC and what they intend to do with their monetary policy.
Yesterday, we saw equities drift lower on the session, while the USD has been largely unchanged all week. Elsewhere, precious metals have also been on the backfoot which staggers me given the fact that inflation is red hot.
For the time being, BTC is holding steady above the $40,000 level as we all sit and wait on the Fed.
The Data Agenda
All the attention today is on the FOMC and what they think about the state of money printing, interest rates, inflation and the jobs situation.
The Fed has been stating that inflation (which is now at 5%) is transitory. I personally feel that true inflation is most likely running at closer to 10% and the current situation is creating one of the biggest bubbles we’ve ever seen. Those sentiments were echoed by Michael Blurry, of the Big Short fame, and that could spell trouble ahead.
With that in mind, we will be looking at Powell’s commentary and also the dot plot which could give us some hints as to what policymakers are thinking. While rates will likely not move today, it’s all about whether the Fed continue to live in fantasy land with their money printing. It would be nice if at any point they start telling the truth about the failures of money printing and unbacked fiat in general, but don’t hold your breath.
Forex Signal Update
The FX Leaders Team grabbed one win in our EUR/USD trade in what was a quiet session.
XRP – Active Signal
XRP continues to drift along at the moment. The SEC case is going nowhere fast as we wait on new information.
ETH – Active Signal
ETH has had a quiet 24 hours as the $2,500 level holds for now.
BTC is still trying to hold onto the $40,000 level after a couple of quiet sessions.
There weren’t too many headlines yesterday which was a change of pace. So for the time being, we sit and wait for new developments. Inflationary talk from the FOMC could well be bullish for Bitcoin.