Oh kings of trading..

The market today is preparing a "liquidity trap" of heavy caliber. At 2:30 PM Cairo time (3:30 PM Saudi time), the screens will receive a cluster of crucial data at the same moment, and here is the summary of what will happen:

First: The map of numbers (catastrophic contradiction)

The preferred inflation for the Federal Reserve (PCE): the expectations confirm that consumer personal spending will jump to 0.6%, and the overall monthly inflation will increase to 0.4%. These numbers indicate that inflation is still fierce and continuing in the market.

GDP collapse: Here is the real shock; the market expects economic growth to collapse to just 0.7%, down from 4.4% in the previous quarter.

The labor market is starting to bleed: Unemployment claims are expected to rise to 210,000 requests, confirming that companies are starting to lay off employees.

Secondly: Expected scenarios (technical summary)

Stagflation: If these figures come out as expected, they will put the Federal Reserve in a "vice." Inflation is rising while the economy is collapsing and unemployment is increasing. The Fed won't be able to lower interest rates to address the recession due to inflation, and this is the worst-case scenario for financial markets.

The deadly volatility: At the moment the news is released, the candles will create extremely long random tails (Spikes). The dollar may spike up momentarily in reaction to rising inflation, but it will take a strong and direct selling hit afterward due to the disaster of GDP collapse.

Gold is the beneficiary: In cases of stagflation, gold tends to be the biggest winner in the medium term as a "safe haven" against the collapse of economic growth and the Fed's turmoil.

Advice for traders:

Entering at the intersection of these news (2:30 PM Cairo time) is "financial suicide" for your account. The spread will widen insanely and the platforms will freeze. Secure your open positions by entering now immediately, and avoid opening any new positions until the four-hour candle closes and we see the true direction of liquidity away from randomness.

#Economy #Trading #Forex #Dollar #Gold #Inflation #Recession #الناتج_المحلي $ETH $BTC