Why is the United States eager to negotiate with Iran? Mainly because of the upcoming Japanese BOJ rate hike and hawkish speeches. To put it simply, Japan is tightening monetary policy to drain liquidity from the market through rate hikes, while the US is negotiating with Iran to inject liquidity into the market, taking over Japan's liquidity to maintain market bubbles, reverse rate hike expectations, and give the FOMC room to maneuver.


The Federal Reserve's FOMC is very likely to be hawkish in appearance but dovish in substance. The general idea is that when the FOMC announces its interest rate decision, they will say a lot of hawkish things, like watching upcoming data and that conditions still support tightening. However, during the subsequent press conference, when reporters ask questions, Powell will start to sound dovish, talking about Middle East peace, the need for further observation, and that oil prices will drop quickly.
This week, market volatility is likely to be quite high. Everyone, get ready!
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