Fed’s inflation target is projected to be reached by 2026

Welcome to Market Insights! Today’s episode covers the Fed’s inflation outlook, EUR/USD trading strategies, and global equity trends.

Highlights

📉 Fed’s inflation target is projected to be reached by 2026.

📊 EUR/USD shows bearish momentum; fade the rally setup recommended.

📈 European equities rise, with the Stock 600 up 0.4%.

🇺🇸 Quiet US markets due to President Carter’s funeral.

💬 Bank of England hints at potential rate cuts in February.

🇨🇳 Cautious sentiment in China despite earlier stimulus optimism.

💡 USDC/CHF and USD/CAD show interesting trading opportunities.

Key Insights

📉 Fed’s Inflation Challenge: The Fed’s report reveals a tough road ahead to reach the 2% inflation target by 2026, indicating ongoing economic hurdles.

📊 EUR/USD Trading Strategy: A fade the rally setup at 1.03800 is advised, emphasizing strong resistance levels that traders should monitor for potential shorting opportunities.

📈 European Equity Performance: The positive trend in European equities suggests a resilient market, with the Stock 600 reflecting investor confidence despite global uncertainties.

🇺🇸 Impact of US Events: The market’s quietness due to President Carter’s funeral indicates how external events can influence trading dynamics.

💬 Bank of England Policy Signals: Indications from the Bank of England suggest potential rate cuts, which could affect currency valuations and investor sentiment in the UK.

🇨🇳 China’s Economic Sentiment: Despite previous optimism, caution remains in China, highlighting the need for traders to be skeptical of overly bullish market calls.

💡 USDC/CHF and USD/CAD Trends: Both currency pairs show potential trading opportunities, with USDC/CHF in a range and USD/CAD shifting bullish, suggesting traders keep an eye on breakout points.

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