Global markets are significantly influenced by events occurring in the United States, where both political and economic spheres continue to swing like a pendulum.

Earlier this week, after the U.S. Court of International Trade agreed to hear a lawsuit filed by several American companies dissatisfied with the draconian import tariffs, markets swiftly responded with increased demand for stocks and a strengthening dollar. However, as the saying goes, misfortunes never come alone: a session at the Federal Appeals Court resulted in a decision to temporarily uphold Trump's tariffs. Consequently, markets reacted with a weakening dollar, reduced demand for stocks, and a drop in Treasury yields. This budding legal battle now threatens to become a soap opera with direct market implications.

While the Trump administration continues its legal dispute with disgruntled business representatives, the market focus shifts to key inflation data scheduled for release today. Specifically, the PCE report (Personal Consumption Expenditures Price Index) and data on personal incomes and spending will be in the spotlight.

According to consensus forecasts, the April annual PCE figure was expected to decline from 2.3% to 2.2%, while the month-on-month figure was forecast to rise by 0.1% after being flat in March. The core PCE numbers were also expected to decrease on an annual basis from 2.6% to 2.5%, with a 0.1% monthly increase.

How Might Markets React to This Data?

Considering that in recent months, investors have largely ignored even the most important economic data, focusing instead on Trump's policies and related developments, the market reaction is likely to be muted.

What Can We Expect from Markets Today?

Overall, I believe that markets will remain heavily influenced by the escalating legal battle between the administration and plaintiffs over tariff issues. Any shifts in the broader picture in either direction will swing the markets, contributing to heightened volatility.

Forecast of the Day:

#Bitcoin

The token has fallen below the strong support level of 106,524.00. Uncertainty surrounding the potential outcomes of the legal dispute could lead to a continued local decline in demand for the asset, pushing its price down toward 101,985.00. A selling point could be around 104,450.24.

#Litecoin

The token has also fallen below the strong support level of 92.30. Uncertainty around the legal battle's outcome could lead to a further decline in the asset's price, pushing it toward 81.63. A selling point could be around 89.55.