Financial conditions tightening due to rising USD, interest rates, potential market weakness

From Investing.com: 2025-01-13 02:01:00

The USD continues its climb after breaking out from a 2-year trading range, fueled by sticky inflation data suggesting the Fed will likely stay put. Technical analysis shows a potential breakout above 2022 highs with limited resistance. Rising interest rates are also pushing higher, but recent fluctuations raise questions of a breakout versus a shakeout scenario. Shakeouts involve temporary price shifts before reversing, while breakouts signal a legitimate trend change. Rising rates and a stronger USD could tighten financial conditions, impacting stocks. The possibility of market weakness early on is a concern amidst the current market dynamics.



Read more at Investing.com: Financial Conditions Continue to Tighten in Response to Recent Data