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Macro Outlook for Next Week: Traders Reprice Fed Rate Cut Before September, Dollar Frenzy Cools Down

Macro Outlook for Next Week: Traders Reprice Fed Rate Cut Before September, Dollar Frenzy Cools Down

Bitget2025/02/15 13:14

On February 15, this week's CPI report showed an increase in the US consumer inflation rate. Federal Reserve Chairman Powell acknowledged the need to do more work to alleviate price pressures in the economy. Expectations for interest rate cuts cooled down, but subsequent weak retail sales data brought some hope. Wall Street's ability to handle dramatic events was once again tested. It has been proven once again that traders are capable of handling this task and ultimately, the overall market did not suffer a major impact. Here are key points that will be focused on in the new week:

Monday at 22:30, FOMC voter for 2026 and Philadelphia Fed President Harker will give a speech;

Monday at 23:20, Federal Reserve Governor Bowman will speak;

Tuesday at 23:20, FOMC voter for 2027 and San Francisco Fed President Daly will speak;

Thursday at 03:00, The Federal Reserve releases minutes from its January monetary policy meeting;

Thursday at 21:30, Initial jobless claims for the week ending February 15th in America; U.S. Philadelphia Fed Manufacturing Index for February;

Thursday at 22:35, FOMC voter for year of 2025 and Chicago Fed President Charles Evans speaks.

Friday at01:05,FOMC voter for year of ​​2025 and St Louis Fed president Bullard speaks New York Economic Club.

Friday at22:45,U.S Preliminary PMI manufacturing/services index figures released

Fridayat23:00,Final reading of University Michigan Consumer Sentiment Index & one-year inflation expectation figure released 

After Powell's semi-annual testimony and January inflation data investors are unlikely to pay much attention to next week's minutes from the Federal Reserve’s January meeting so focus may shift towards Friday’s global S&P PMI data release instead.PMI below50 could put pressure on dollar while boosting gold.A survey conducted by Bank of America in February among more than 50 global fund managers showed that betting on a stronger dollar is still considered the most crowded position among interest rate and currency traders. Nearly half of investors expect the dollar exchange rate to peak in the first quarter of this year.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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