- USDIndex – extended profits on 111.51, The FOMC raised rates by 75 bps, but it was a much more hawkish outcome. The focus was on revisions of the Environmental Protection Act, which did not disappoint the dots come much higher than expected, sharpening the short-term trajectory and finally sa higher than the previously assumed terminal rate. Chairman Powell also said the policy path the Fed is actually taking will be enough to get the job done.
- Revenues: The 2-year finally climbed above 4% to close at 4.03%, the first time since then with this handle October 2007. The 10-year was 5 bps richer at 3.510% after a sharp rise to 3.624% just after the Fed release.
- euros – remains at 0.9820.
- JPY – raised to 145.44as Kuroda’s warning on the yen may help limit the move higher as it leaves markets speculating about outright foreign exchange interventions, although most expect Japan to try to get support from the US and avoid going it alone.
- GBP – plunged into 1.1220.
- Stocks in the red with losses -1.79% on US100, and -1.7% on US30 and US500. GER40 and UK100 Meanwhile, futures were down -1.6% and -0.8%.
- USOil –
Overnight – The BoJ will continue with an easy policy setting until the 2% inflation target is met, adding that the bank will not hesitate to ease the policy setting further if necessary. As expected, the FOMC raised the interest rate band by 75 bps to 3.0% to 3.50%. That makes a total The rate increased by 300 bps to the highest since 2008. And more increases are on the way, as the policy statement reiterated that the committee “anticipates that continued increases in the target range will be appropriate.” In addition, the dot chart showed the median funds rate at 4.4% at the end of 2022, or about a 125 bps increase from here, leaving another 75 bps on the table. The median rate at the end of 2023 is 4.6%.. The vote was unanimous. This is a hawkish increase of 75 basis points and is higher for a longer stance through 2023.
Today – SNB and BOE announcements and US jobless claims.
The biggest FX Mover @ (06:30 GMT) CHFJPY (+1.03%) MAs are aligning higher, the MACD histogram and signal lines have turned positive and are rising. RSI 78, H1 ATR 0.471, Daily ATR 1.599.
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