In a rapidly changing economic landscape, speculation is rife that the Federal Reserve might cut rates more than previously anticipated, drawing comparisons to recent UK monetary policies. This comes amid a sharp correction in Solana (SOL), which has led to over $26 million in liquidations within the last 24 hours and a staggering $110 million over the past week. The dynamics in the US, eurozone, and UK remain distinct, with repo rates in the US appearing more attractive. This has investors on edge as bills in the US are expected to appreciate despite a cautious market mood.
The Solana price experienced a significant decline of over 11% last week and hovered around $160 on Monday. Meanwhile, in the European session, the EUR/USD pair retraced its gains, falling below the 1.0500 mark. Economic indicators also painted a mixed picture, with German IFO data offering no clear direction. However, the German Conservatives Party's triumph in the federal election has revived hopes for an improved economic outlook, providing some relief to worried investors.
Investor sentiment remains jittery, partly due to concerns about potential trade tariffs imposed by former President Donald Trump that could spark a global trade war. Despite these uncertainties, the upside remains elusive as market participants exhibit a cautious mood. The market's focus will likely remain on how these geopolitical and economic factors evolve in the coming weeks.
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