Global markets closed the week in positive territory, supported by easing trade tensions and some encouraging signs of economic stability. While inflation and interest rate concerns haven’t disappeared, overall sentiment improved—especially in the U.S.—as investors responded to a more balanced macro picture.
Earnings in key sectors have come in stronger than expected, and some inflation indicators are showing signs of cooling. That’s been enough to spark a cautious shift back toward risk, with more traders rotating into cyclical and growth-sensitive assets.
In short: the backdrop is still uncertain, but the market’s showing resilience—and traders are paying attention.
It is important to remember to assess your financial situation and risk tolerance, before engaging in copy trading. Past performance and forecast are not reliable indicators of future results.
Inflation Eases—But the Fed’s Not Blinking
Markets are walking a tightrope between cooling inflation hopes and a Fed that’s not ready to ease up. Some recent data suggests price pressures may be fading, but policymakers are keeping rate hikes on the table—and traders know it.
The result? A cautious, data-driven environment. Good news sparks gains, but hawkish Fed signals can still shake markets fast. Everyone’s watching the next inflation prints closely, knowing the path forward depends on whether the Fed sees enough progress—or not.
Stocks saw modest gains, but the momentum wasn’t evenly spread. Tech and cyclical names did the heavy lifting, driven by AI optimism and cooling trade tensions. Big names in innovation kept the sector strong—giving the market a much-needed boost.
But elsewhere, things looked more cautious. Rising bond yields and rate worries kept pressure on rate-sensitive sectors, with investors eyeing the impact of higher borrowing costs on profits. For now, growth stories are holding up—but it’s far from a broad-based rally.
Gold took a hit this week, sliding as safe-haven demand faded and the dollar strengthened. With inflation fears easing, traders backed off defensive plays—shifting focus toward risk assets.
Meanwhile, oil prices edged higher, supported by supply concerns and the usual seasonal demand boost heading into summer. Industrial metals were mixed, reflecting uneven global growth signals.
For commodity traders, it’s all about reading the headlines—geopolitics, inventories, and central bank signals are setting the pace.
The U.S. dollar held its ground this week, backed by solid economic data and the Fed’s firm policy stance. While other central banks lean dovish, the Fed’s commitment to inflation control keeps the dollar in demand.
As a result, the euro and pound lost some ground, and the yen hovered near multi-year lows. With rate paths diverging globally, traders are locked in on upcoming inflation prints and central bank signals.
Policy divergence remains a key driver in FX markets—and the dollar’s still calling the shots.
Markets are steady as easing inflation and strong tech fuel gains—but the Fed’s watchful eye keeps traders cautious. Risk is back, but so is volatility, so stay sharp and ready for anything.⚡️
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XAUUSD Coils Between 3170 and 3300: Is a Breakout Brewing?
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XAUUSD faces a critical test as gold trades between key levels of 3170 and 3300. Explore the latest price action, technical signals, and what traders should watch ahead of the upcoming U.S. inflation data.
Stay ahead of the markets with NAGA’s top economic events to watch from May 26–30, 2025. Get insights on the FOMC minutes, GDP revision, and Core PCE — and learn how to trade them.
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