empty
06.05.2025 10:02 AM
Markets Anxiously Await the Fed's Monetary Policy Meeting (Potential for Renewed Growth in Bitcoin and #NDX)

Markets remain tense. The U.S. Dollar Index and the cryptocurrency market are stagnating, caught between opposing forces. Investors are tensely awaiting the outcome of the Federal Reserve's monetary policy meeting.

Donald Trump's presidency has left financial markets completely disoriented. His attempts to solve America's core issues with blunt-force tactics appear to have failed, and constant maneuvering on the geopolitical stage has only increased market volatility. No trade deal has been reached with China, efforts to resolve the Ukraine conflict have consistently failed, and the domestic economy remains in a precarious state. Meanwhile, the president has launched a new high-profile campaign—this time targeting Hollywood—perhaps hoping to score political points at home.

Monday's non-manufacturing sector data came in above expectations but still hovered dangerously close to the critical threshold, reflecting continued weakness in the U.S. economy. The ISM Non-Manufacturing Index rose to 51.6 in April from 50.8 in March (versus a forecast of 50.2), which was a pleasant surprise. However, like other non-manufacturing indicators, it remains just above the 50-point level that separates expansion from contraction.

Against this backdrop, investors desperately seek clarity on where the markets might head next.

They continue to speculate on what the Fed will decide. While the consensus forecast suggests the key interest rate will remain unchanged at 4.5%, there is a real risk of an unexpected rate cut. Such a move would support the economy by boosting business activity and would align with the intentions of the 47th U.S. president.

As a result, market activity has become notably stagnant. Major forex pairs are at a standstill. The same goes for cryptocurrencies. Stock index growth has slowed. The only segments showing strong momentum are commodities and raw materials. Gold prices are rebounding, as are oil prices, which are climbing due to heightened geopolitical tensions in the Middle East, where Israel launched airstrikes on the port of Hodeidah in Yemen and a cement factory in retaliation for missile attacks carried out by Iran-backed Houthis.

What to Expect in the Markets Today

I believe only safe-haven assets, particularly gold and oil (due to Middle East tensions), will be in demand. All other markets—forex, equities, and crypto—will likely consolidate until the Fed's policy decision is announced.

This image is no longer relevant

This image is no longer relevant

Day's Forecast

Bitcoin

The token is consolidating within the range of 93,324.00–95,426.75. If the Fed unexpectedly cuts interest rates tomorrow, Bitcoin could sharply rise toward the 99,400.00 level. A potential entry point for buyers would be around 95,711.30.

#NDX (NASDAQ 100 Futures CFD)

The contract has paused its upward movement in anticipation of the Fed's decision. It may correct downward to 19,635.00, bounce from that level, and—if the Fed does cut rates—resume growth toward 20,609.00. A potential buying opportunity on the dip lies near 19,706.00.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Overview – July 3: Jerome Powell Finally Responded to Trump

The GBP/USD currency pair plummeted on Wednesday like a stone. However, every drop in the pair eventually gives way to a much stronger rise. Therefore, at this point, there's

Paolo Greco 03:45 2025-07-03 UTC+2

EUR/USD Overview – July 3: One Big Trump Law Passed, Dollar at 4-Year Lows

The EUR/USD currency pair traded relatively calmly on Wednesday, although the word "calm" may not accurately describe the daily decline of the dollar. The most accurate picture of what's happening

Paolo Greco 03:45 2025-07-03 UTC+2

Transition from Aggressive to Cautious Position by the ECB

The annual economic forum is currently taking place in the Portuguese town of Sintra, which explains the daily speeches by central bank heads. Most of the information being shared

Chin Zhao 00:42 2025-07-03 UTC+2

USD/JPY. Yen: Interrupted Flight

The USD/JPY pair dropped by 200 points over two days and on Tuesday hit a nearly four-week low, testing the support level at 142.70 (the middle line of the Bollinger

Irina Manzenko 00:38 2025-07-03 UTC+2

The Dollar Has Found Its Achilles' Heel

Be careful what you wish for. Euro supporters believe that EUR/USD will reach at least 1.25 by 2026. However, one must understand that while the eurozone may remain a unified

Marek Petkovich 00:38 2025-07-03 UTC+2

USD/JPY. Analysis and Forecast

Recent political and economic statements are having a significant impact on the USD/JPY pair's dynamics. U.S. President Donald Trump expressed frustration over the prolonged trade talks with Japan

Irina Yanina 18:51 2025-07-02 UTC+2

Crowd sets tone, market follows

No fight. The S&P 500 managed to hit new record highs because market professionals — the so-called "smart money" — see no need to go against the prevailing momentum

Marek Petkovich 12:46 2025-07-02 UTC+2

AUD/USD. Analysis and Forecast

Today, the AUD/USD pair is retreating slightly from the new yearly high near 0.6590 reached yesterday and is trading within a narrow range. Nevertheless, the potential for further downside appears

Irina Yanina 12:44 2025-07-02 UTC+2

USD/CHF. Analysis and Forecast

The USD/CHF pair continues to trade within a narrow range above the 0.7900 level, remaining close to price levels last seen in 2011. The US dollar is showing some gains

Irina Yanina 11:58 2025-07-02 UTC+2

Investors Filled with Optimism, Driving Market Demand Higher (EUR/USD and GBP/USD Pairs May Face Corrective Declines)

Markets continue to react positively to the stabilization of the situation in the Middle East in anticipation of negotiations between Israel and Iran. Meanwhile, investors have shifted their full attention

Pati Gani 11:22 2025-07-02 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.