ZMTRADER1

The dollar is gaining strength... Is the Fed putting pressure on risk markets? The US dollar has seen a notable rise driven by stronger-than-expected inflation data, alongside a hawkish tone from the Federal Reserve, reflecting its commitment to a tight monetary policy for an extended period. This scenario simply means that rate cuts might be delayed, and liquidity will remain tight in the markets. The result? Clear pressure on high-risk assets like cryptocurrencies and stocks, while enhancing the appeal of the dollar and traditional fixed-income instruments. In such an environment, the market isn’t just moving out of ambition, but under the influence of the cost of money. The more stringent the Fed, the more sensitive crypto becomes to any new liquidity flows. In summary: We're entering a phase of "expensive money," where the question is no longer: Where's the opportunity? But: Does the environment even allow for risk-taking? #USDollarUpOnInflationFedHawk