Home Forex Market Update – September 22nd

Market Update – September 22nd

by SuperiorInvest

  • 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 –

OvernightThe 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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Andria Pichidi

Market analyst

Disclaimer: This material is provided as general marketing communication for informational purposes only and does not constitute independent investment research. Nothing in this communication contains or should be considered to contain investment advice or an investment recommendation or a solicitation to buy or sell any financial instrument. All information provided is collected from reputable sources and any information containing an indication of past performance is not a guarantee or a reliable indicator of future performance. Users acknowledge that any investment in leveraged products is characterized by a degree of uncertainty and that any investment of this nature involves a high level of risk for which users are solely responsible and liable. We shall not be liable for any loss arising from any investment made based on the information provided in this communication. This communication may not be reproduced or redistributed without our prior written consent.

Previous articleUSDCNH: approaching July 2020 peak

After completing five years of study in the UK, Andria Pichidi obtained a BSc in Mathematics and Physics from the University of Bath and an MSc in Mathematics, while holding a Postgraduate Diploma (PGdip) in Actuarial Science from the University of Bath. University of Leicester.

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