🔥ATTENTION🔥
💥This week is DECISIVE for the financial markets, #Bitcoin and #cryptocurrencies
👉Let me explain why you need to know this information
What do we need to consider and how does it affect the financial markets⁉️
🔸On Tuesday we have:
▪️Interest rate decision in Japan
-It is expected to keep the rate at 0.50%
-It is KEY that in the statements they do NOT give signals that interest rate INCREASES are coming
Let’s remember that Japan lent 20T dollars in yen at low rates; raising the interest rate could lead investors to SELL assets to pay these loans
🔸On Wednesday we have:
▪️Economic projections from the FED
▪️Interest rate decision in the U.S.
▪️Press conference by Powell
-It is expected to keep the rate at 4.50%, but what really matters are the projections
-The most POSITIVE for the financial markets would be if 2 interest rate cuts are projected for this year and the END of QT (asset sales by the FED)
🔸On Friday we have:
▪️Manufacturing index from the FED of Philadelphia
-It is expected to rise from -4.0 to -1.2
-This index measures manufacturing activity in the U.S. It would be good for the markets if it rises, as it would alleviate FEARS of recession
👉So what would be the BEST scenario for the financial markets and what would be the WORST⁉️
📍The best would be if Japan gives signals that it will NOT raise the interest rate soon, that the FED projects several interest rate cuts for this year, and that it announces the END of QT
📍The worst would be the opposite: that the FED states that the rise in oil prices will increase inflation and that for this reason they will NOT cut the interest rate this year
📍A reduction in the interest rate would generate more money available for investment. That is why investors want a cut.