From The FOMC To NFP And CPI - Markets Weekly Outlook

Dean Popplewell4.05K FollowersFollow5ShareSavePlay(7min)CommentsSummaryThe Fed delivered a highly expected 25 bps cut on Wednesday, taking rates from the 3.75%-4.00% range down to 3.50%-3.75%, officially shutting the door on the 4% policy rate era.The US Dollar took a huge hit following the cut, despite the lack of explicitly dovish signals and lower projections in 2026.The Bank of England now holds the highest interest rates of OECD nations and has about 60 bps of cuts priced in through 2026. Zhanna Hapanovich/iStock via Getty Images By Elior Manier Week in review – The Debasement Trade shines again after the Fed Cut Markets were salivating for the FOMC rate decision, and they got exactly what they wanted. The Fed deliveredThis article was written byDean Popplewell4.05K FollowersFollowDean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.Quick InsightsHow did the Fed's rate cut affect major asset classes and market sentiment?The 25 bps cut propelled the Dow to record highs, weakened the US Dollar, and triggered rotation out of tech into industrials and traditional assets, but also sparked profit-taking and volatility.What are the key risks highlighted by Fed officials following the rate cut?Fed President Goolsbee's dissent underscores risks of cutting too soon, citing persistent inflation and a labor market that is not yet dire, suggesting further cuts may be premature.Which upcoming events are expected to drive significant market volatility?Major central bank decisions (BoJ, ECB, BoE) and critical US data releases (NFP, CPI) next week are likely to induce sharp volatility across global markets.Recommended For You