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This week, the short-term outlook remains bearish, mainly because market sentiment is driven by the Fed's actions and key economic data.
1. First is the FOMC July meeting minutes from Thursday (August 21) early morning.
As analyzed before, the FOMC meeting minutes mainly reveal the Fed's true view on inflation still being stubborn.
And how feasible they think it is to lower interest rates in September.
After the PPI data shows that high interest rates need to be maintained for a longer period, this meeting is most likely a mild bearish signal.
2. Jackson Hole Global Central Bank Annual Symposium, from Thursday (August 21) to Saturday (August 23)
This mainly depends on the speech of Fed Chairman Powell to see if he will give the green light for a rate cut in September or release a clear signal for a rate cut. Of course, it is highly likely that Powell will not make a commitment to a rate cut, which is mostly a minor negative.
3. The global PMI preview data for August will also be gradually released on Thursday (August 21) morning.
PMI is a report card for the economy mentioned earlier, focusing on whether the service industry is cooling down and whether the manufacturing sector continues to be weak. Even if the data is slightly below expectations, it is also bearish for the crypto market.
For traders, it is now appropriate to reduce positions to increase tolerance for risk. After Powell's speech, the situation will become clearer, and then a further assessment can be made.