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

USD/CAD. Analysis and Forecast

The USD/CAD pair remains in a sideways consolidation near its lowest levels since October 2024. Market participants are awaiting the Bank of Canada's interest rate decision, which will be announced

Irina Yanina 09:57 2025-06-04 UTC+2

The Market Is Playing a Dangerous Game

Is the market only hearing what it wants to hear? Or is it simply playing the "buy the dip" game? According to Nomura, buying the S&P 500 five days after

Marek Petkovich 09:27 2025-06-04 UTC+2

What to Pay Attention to on June 4? A Breakdown of Fundamental Events for Beginners

There are not many macroeconomic reports scheduled for Wednesday. Of course, we should note the services sector business activity indices for Germany, the UK, the EU, and the US. However

Paolo Greco 07:27 2025-06-04 UTC+2

GBP/USD Overview – June 4: Trump Is Only Interested in the Big Fish

The GBP/USD currency pair traded lower on Tuesday, but the decline was weak, just like the volatility. Just look at the most recent stretch of the GBP/USD movement

Paolo Greco 03:41 2025-06-04 UTC+2

EUR/USD Overview – June 4: Words, Words... Where Are the Actions?

The EUR/USD currency pair traded relatively calmly throughout Tuesday, and the U.S. dollar even managed to gain slightly. However, we wouldn't pay much attention to a dollar rise

Paolo Greco 03:41 2025-06-04 UTC+2

The U.S. Economy Will Suffer More Than Others from Tariffs

Donald Trump is jeopardizing his own economy. This was the conclusion reached by the G-20 countries at their recent summit. According to summit participants, the discussions focused on the trade

Chin Zhao 00:28 2025-06-04 UTC+2

EUR/USD. Failed Assault on the 1.14 Level: Bears Retreat but Do Not Surrender

Buyers of EUR/USD started the trading week vigorously, testing the resistance level at 1.1450 (the upper line of the Bollinger Bands indicator on the daily chart) and updating a six-week

Irina Manzenko 00:27 2025-06-04 UTC+2

Euro: Trouble Has Arrived – Open the Gates!

Trouble came from where it was least expected. Frustrated by its coalition partners' refusal to support its immigration control plans, the Freedom Party dismantled the Dutch government. The country will

Marek Petkovich 00:27 2025-06-04 UTC+2

The dollar cannot find a reason to strengthen

The CFTC report showed that expectations for a reversal in the dollar have not materialized. After three weeks of relative stability, during which the total short position

Kuvat Raharjo 19:16 2025-06-03 UTC+2

The Pound Rises Against All Odds

The manufacturing PMI in May came in above expectations, but that was where all the positivity ended — 46.6 points, still below the expansion zone, and there's no talk

Kuvat Raharjo 19:09 2025-06-03 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.