QCP Capital: There are no signs of panic on Wall Street, and CPI data may become a key catalyst for the dollar index
ChainCatcher news, QCP released a daily report stating that despite the recent escalation of international trade tensions, traditional financial markets remain stable and show no signs of panic. Credit yields are at a cyclical low, and the VIX index is stable around 16, indicating that the market is prepared for negative news.Federal Reserve Chairman Powell's testimony reinforced a "wait-and-see" attitude, suggesting that the pace of interest rate cuts may slow down, but the Dollar Index (DXY) failed to rise. CFTC data shows a large number of long positions in the dollar, and interest rate differentials indicate that the dollar is overvalued, increasing downside risks. Tonight's CPI data could act as a catalyst for a decline in the dollar, pushing up the prices of risk assets.However, Bitcoin has underperformed compared to stocks and gold, with thin liquidity in the cryptocurrency market leading to significant losses for traders due to large-scale liquidations last week. It is recommended that investors holding long positions in cryptocurrencies follow institutional fund flows and purchase downside protection, especially when put options remain relatively cheap.