Buy the DIP!! Next dip will be right after the FOMC
Buy the Dip!!
Since on friday the market expects the FED is likely to 75bp rate hike the coming meeting.
DXY has broken the current high on monday session, and It absolutely bullsih on USDJPY market but I'm skeptical about it.
J Pow At the "MARKET PLACE" radio interview last month he said "If things come in better than we expect, then we’re prepared to do less. If they come in worse than when we expect, then we’re prepared to do more."
Let me think about it carefully and do not miss when he said "WE EXPECT"
It means 40 years high inflation at 8.6% could be bad for them, could not be so bad for them.
So my question is who knows it was better or worse?
Take a look on the current released CPI data.
You will notice that core YoY decrese, Most of products inflation stay close to the previous level except energy prices.
Here is my answer, They do 50bp hike the upcoming meeting, Tightening monetary policy is not so affectable for this inflation right now.
What brought current CPI so high is uncontrorable and unstoppable enegry prices which volatiles geopolitical reasons/out of the US.
So It's gonna be the "DIP" when fed decides 50bp hike at the June meeting.
Since on friday the market expects the FED is likely to 75bp rate hike the coming meeting.
DXY has broken the current high on monday session, and It absolutely bullsih on USDJPY market but I'm skeptical about it.
J Pow At the "MARKET PLACE" radio interview last month he said "If things come in better than we expect, then we’re prepared to do less. If they come in worse than when we expect, then we’re prepared to do more."
Let me think about it carefully and do not miss when he said "WE EXPECT"
It means 40 years high inflation at 8.6% could be bad for them, could not be so bad for them.
So my question is who knows it was better or worse?
Take a look on the current released CPI data.
You will notice that core YoY decrese, Most of products inflation stay close to the previous level except energy prices.
Here is my answer, They do 50bp hike the upcoming meeting, Tightening monetary policy is not so affectable for this inflation right now.
What brought current CPI so high is uncontrorable and unstoppable enegry prices which volatiles geopolitical reasons/out of the US.
So It's gonna be the "DIP" when fed decides 50bp hike at the June meeting.