Fed +75bp: Willing to Risk Recession for Inflation
Daily FX Market Roundup 06.15.2022 By Kathy Lien, Managing Editor By raising interest rates 75bp to 1.75% at their June monetary policy meeting, the Federal
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Daily FX Market Roundup 06.15.2022 By Kathy Lien, Managing Editor By raising interest rates 75bp to 1.75% at their June monetary policy meeting, the Federal
Expectations for a 75bp hike soared to 96% according to the CME’s Fed Watch tool.
The Federal Reserve’s aggressive plans for tightening this year is the main reason for robust dollar demand but the prospect of Quantitative Tightening, which is the opposite of quantitative easing caused investors to shrug off mixed data and step up their purchases this month.
Investors continued to buy U.S. dollars, driving the greenback to its strongest level against the Japanese Yen in more than 6 years.
Fed gears up to raise rates for the first time since 2018. How to trade it. the stage for FOMC.
The euro staged a dramatic intraday reversal today on the back of the European Central Bank’s monetary policy announcement.
The first week of March will be another busy one for investors. Russia’s invasion of Ukraine continues to rock the financial markets with currencies and
The U.S. dollar traded lower against all of the major currencies on Wednesday despite hawkish FOMC minutes and good U.S. data.
This is supposed to be a week focused on data that would shed light on how the U.S. and global economy has been faring since the beginning of the year.
Never underestimate the power of short covering. We saw a lot of that today in EUR/USD and more could follow – 1.15 is an important level that we expect to be tested and broken.
Investors have also been buying euros ahead of the European Central Bank rate decision. No changes are expected from the ECB but the recent uptick in inflation has many traders pricing in a year end rate hike.
The two best performing currencies today were the Australian dollar and euro which is a bit ironic because the Reserve Bank of Australia and the European Central Bank are two of the least hawkish central banks.