Free Trial

Equities Briefly Hit Session Highs, USD Dips on Dovish Read of Fed's 50bps Hike

CROSS ASSET
  • Equity markets respond positively to the Fed's rate decision, with the e-mini S&P adding around 25 points to touch session highs of 4207.75, while the US 10y yield sheds around 4bps before stabilising at around 2.97%.
  • In tandem, greenback weakness is noted across the board, putting EUR/USD at fresh daily highs, while USD/JPY prints new daily lows of Y129.74 (but still just above yesterday's Y129.70 support).
  • The market's dovish response to the Fed rate decision the accompanying Fed statement not stepping up hawkish rhetoric from the previous rate decision - specifically the language surrounding "anticipates that ongoing increases in the target range will be appropriate" (some had seen this being altered to specify a more "expedient" or "front-loaded" pace).
  • Focus turns to the upcoming press conference, with Powell due to begin in around 20 minutes.
  • A few minutes out from the rate decision itself, price action partially reverses, with equities now broadly unchanged from pre-decision levels.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.