Key Takeaways

• The Fed is expected to cut rates by 25 basis points this week, intensifying attention on policy signals for global markets.
• Bitcoin and Ethereum display opposing positioning trends, indicating uncertainty in the crypto sector.
• Stock futures remain cautious ahead of the latest inflation data release.
• The dollar index hovers near multi-month lows as expectations increase for Fed easing.
• Traders and analysts are focusing on broader implications for global liquidity and asset prices.

Introduction

On 18 September 2025, global markets are focused on the Federal Reserve’s expected 25 basis point rate cut this week. This move is being closely monitored for its impact on policy signals and market liquidity. As the dollar index approaches multi-month lows and cryptocurrencies like Bitcoin and Ethereum exhibit diverging trends, today’s Press Review provides timely market analysis for traders navigating a rapidly evolving digital environment.

Top Story

Fed Rate Cut Expectations Build

Traders are now pricing in a 75% probability of a Federal Reserve rate cut by March 2025, up from 45% last month. Goldman Sachs and JPMorgan have both revised their forecasts, now expecting three 25-basis-point cuts next year, based on recent cooling inflation data and softer labor market conditions.

August Consumer Price Index (CPI) data released yesterday showed core inflation dropping to 3.2%. This marks its lowest level since April 2021. The labor market is showing signs of moderation, with initial jobless claims rising to 232,000 last week.

Federal Reserve officials continue to emphasize caution ahead of next week’s Federal Open Market Committee (FOMC) meeting. Several voting members stated that decisions will remain data-driven. Chairman Powell noted the committee’s commitment to achieving sustainable 2% inflation.

Also Today

Digital Assets

Bitcoin ETF Speculation Intensifies

BlackRock’s spot Bitcoin ETF application has entered the final review phase at the Securities and Exchange Commission (SEC), according to regulatory filings. Trading volumes in crypto derivatives have surged 40% this month as institutional investors position for potential approval.

Regulatory Framework Develops

The timeline for implementing the European Union’s Markets in Crypto Assets (MiCA) framework has been confirmed for December 2025. Major exchanges are accelerating compliance efforts, with Binance and Coinbase expanding European operations.

Market Sentiment

Risk Appetite Improves

Global fund managers have increased equity allocations to the highest levels since January 2024, according to Bank of America’s monthly survey. Technology and healthcare sectors are attracting the strongest inflows.

Volatility Declines

The VIX index has dropped below 15 for the first time in six months, while credit spreads continue to tighten. Institutional investors are reducing cash holdings, suggesting increased confidence in market stability.

Market Wrap

Global Markets Rally

Major equity indices reached new highs. The S&P 500 gained 1.2% and the Nasdaq advanced 1.8%. European stocks also rose, with the Stoxx 600 up 0.9%.

Bond Yields Decline

Treasury yields fell across the curve. The 10-year note dropped 8 basis points to 4.12%. The dollar index weakened by 0.5%, supporting emerging market currencies and commodities.

To navigate the changing landscape, traders are re-examining their risk frameworks and focusing on the fundamental principles of sound decision-making. For those seeking a foundational overview, explore trading strategies to build a robust approach regardless of market conditions.

What to Watch

• Federal Reserve interest rate decision and press conference: 20 September 2025, 14:00 EDT
• U.S. Consumer Price Index for August: 22 September 2025, 08:30 EDT
• European Central Bank Economic Bulletin: 25 September 2025, 10:00 CET
• Bank of Japan monetary policy meeting: 27 September 2025

Conclusion

Anticipation surrounding the Fed’s expected rate cut is shaping market analysis for traders. Equity rallies and a weaker dollar reflect shifting policy outlooks. Diverging trends in digital assets and strong equity inflows highlight the evolving market environment. What to watch: the Fed’s interest rate decision and press conference on 20 September 2025, followed by key economic releases throughout the month.

In an environment marked by shifting market sentiment, maintaining psychological resilience is as crucial as ever. Learn more about trading psychology to strengthen mindset and discipline during periods of uncertainty.

Staying adaptable in analyzing technical trends can further enhance decision-making as global liquidity dynamics evolve. Discover essential technical analysis concepts that can help refine your approach and prepare for ever-changing conditions.