Asia Colour - 8 May 25
1/ As expected, the Fed held rates steady. Powell offered no timeline for cuts, deferring guidance to June while sticking to the familiar narrative of a strong economy and sticky inflation.
2/ Despite Powell’s wait-and-see approach, markets are already pricing in action. Current expectations point to three rate cuts—one each in July, September, and December—underscoring the growing disconnect between Fed communication and market sentiment.
3/ President Trump teased a major trade deal this morning, with speculation pointing to the UK. Despite few details, the headline alone sparked a sharp risk-on reaction across global markets.
4/ Crypto jumped on the news. $BTC rose 2.74% to reclaim $99K, while $ETH surged 6.89%, breaking out of a three-week range. Options flow showed strong demand for May and June calls, signalling renewed bullish sentiment.
5/ As the US open approaches, the key question is whether the rally holds or fades on confirmation. We stay cautiously constructive—until $BTC closes above $100K, upside remains limited.
Read more: www.qcpgroup.com/insights/asia...
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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