Fed Rate Cut Expectations Tested Again in Inflation Fight

The news signals that Fed rate cut expectations are being retested against inflation; this uncertainty does not clarify direction in the short term. Technical indicators are mixed: price is above SMA20 and SMA50, RSI at 52.7 is in neutral territory, and MACD is slightly below its signal line. The 24-hour gain of 0.67% indicates weak momentum, but the trend remains intact. The impact of the news largely depends on upcoming inflation data; therefore, a sideways move is more likely over the next 1-3 days. Nevertheless, data surprises could trigger sharp moves.

The news indicates that the expectation of a Fed rate cut will be retested by inflation data; this uncertainty does not clarify the direction in the short term. On the technical side, NDX rose 1.66% in the last close, trading above SMA20 and SMA50, maintaining a positive trend. However, with RSI at 55 in neutral territory and below the MACD signal line, momentum is weakening. Therefore, the news alone is not a strong catalyst; mixed signals stand out in the 1-3 day outlook. Upcoming data on rate expectations will determine the direction.

The news implies that Fed rate cut expectations are being reconsidered in the fight against inflation; this uncertainty creates two-way risk for the DXY. On the technical side, the price is above the SMA20 and SMA50, the RSI at 62 is positive but close to overbought territory, while the MACD is slightly below its signal line and points to weakening momentum. Although the 24-hour 0.31% rise supports a short-term buyer bias, the negative position of the MACD calls for caution. Since the news does not provide a clear direction, a neutral course and limited volatility can be expected in the 1-3 day outlook. Whether the dollar index can hold the SMA20 around 103.17 as support will be decisive for the short-term direction.