First, the market today (based on UTC+6 timezone) is expected to move like this:
Morning (8-10 AM): Market’s kinda chill, not much action.
Late morning to afternoon (11 AM – 3 PM): Green candles! I messed up yesterday, didn’t account for the Middle East heating up. China’s central bank (PBOC) injected money, but somehow, the market still went red. Now, I see things differently: the U.S. reverse repo (RRP) is up, PBOC is injecting cash, and Japan’s central bank (BoJ) is taking a break.
Afternoon (4-6 PM): Red zone incoming.
Evening (7-10 PM): More red, waiting for the U.S. Fed (FOMC) meeting.
Late night (10 PM – 12 AM): Still red.
Overnight (1-8 AM): FOMC is expected to stay “dovish” (meaning they won’t tighten policies aggressively).
Now, a few things are shaping this market:
U.S. housing data is up, the dollar index (DXY) is rising, and RRP is climbing—classic signs of a red day.
Bitcoin is hanging in there, still managing to form wicks, meaning there’s some resistance to the downside.
Big central bank updates ahead: Japan’s interest rate decision in the morning, then the Fed at night, followed by China’s loan rate update tomorrow morning. It’s almost like they planned it together. China always goes last.
What’s up with RRP?
When RRP surges, it usually means a big drop is coming. But Bitcoin is showing resilience—still making wicks, meaning buyers are stepping in.
Geopolitics is in the mix too:
Trump and Putin had a call that helped calm oil prices, which have been crazy due to the Middle East situation. Russia seems to have gained a lot from that discussion.
FOMC is the big event tonight:
Bitcoin RSI is at 44.
The much-feared recession? Doesn’t look like it’s happening.
Great Depression 2.0? Canceled.
Inflation? Might run wild and hit double digits, so brace yourself.
There’s this interesting note: the longer the US Congress delays raising the debt ceiling, the less money circulates in the system. This could have big implications for liquidity and markets.
Meanwhile, banks like BofA, Deutsche Bank, and UBS are betting the Fed will slow down or even end its tightening (QT).
Japan is doing its own thing:
The yen keeps dropping—now at 149.74 per USD.
BoJ’s governor basically said, “We won’t hike rates while the economy is weak.”
The market didn’t react immediately to Japan’s update—it waited for the BoJ press conference to end before making a move.
Big takeaway?
Everything hinges on the Fed tonight. If they stay soft (dovish), markets could breathe a little. If not, brace for impact.”
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