The next two weeks will see a series of intense macroeconomic events: The CPI data this Wednesday and the PPI data this Thursday are the most critical—being the last two inflation reports before the Federal Reserve FOMC meeting (the first in two months). The market expects the Federal Reserve to announce a rate decision, but more importantly, its assessment of the U.S. economy, inflation, and medium-term monetary policy.
Another potential focus that could trigger volatility is the 10-year Treasury auction on Wednesday. Although this event may seem unrelated, it could lead to significant fluctuations amidst the continuous decline in the bond market. Looking back at the last U.S. Treasury auction: Weak demand caused a sharp rise in yields, triggering a sudden plunge in the stock market, a trend that also transmitted to Bitcoin's intraday price.
Finally, attention should be paid to the China-U.S. trade negotiations—today both sides will start a new round of consultations in London. If progress is limited, it may intensify short-term selling pressure (especially since the weekend market rise has partially priced in today's positive expectations). If positive signals about a trade agreement emerge, it would be beneficial for U.S. stocks and the dollar.