📈 A look at the upcoming week in currency and bond markets: The Fed's interest rate decision is at the forefront of events!
━━━━━━━━━━━━━━━
📢 Key events (January 27-31, 2026):
– FOMC meeting on January 28-29, with the decision announcement on the evening of the 29th
– Market expectations: 85% chance of a 25 basis point cut to a range of 3.25%-3.50%, with cautious signals from Powell regarding a "previously undetermined path"
– Other important data: Consumer Confidence Index, Durable Goods Orders, and Non-Farm Payroll (NFP) report on Friday
━━━━━━━━━━━━━━━
💡 Expected impact on bonds:
– 10-year U.S. Treasury yields around 4.65% currently
– Potential rate cut could drive yields down (support for bonds), while a hawkish tone could raise them above 4.8%
– Monitoring the yield curve for signs of recession or growth
━━━━━━━━━━━━━━━
⚡ Expected impact on FX currencies:
– U.S. Dollar (DXY) trading around 108, strong due to trade policies
– Rate cut slightly weakens the dollar (positive for EUR/USD towards 1.05, GBP/USD towards 1.26)
– Emerging currencies like TRY and ZAR are sensitive to fluctuations if the Fed surprises
━━━━━━━━━━━━━━━
❓Do you expect a 25 basis point rate cut this week, or will Powell surprise with a pause? Share your thoughts in the comments!
━━━━━━━━━━━━━━━
📍 If you liked the content, support me with a like and follow to receive all new updates
LEGENDARY_007