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Greenback Surges as Markets Respond to 2023 Dots

CROSS ASSET
  • Immediate market response to the Fed decision is a hawkish read: USD stronger, equities & gold lower and US yields rallying across the curve.
  • Markets eyeing several factors in the decision, with the hike to IOER, O/N RRP rates, 7 dots favouring higher rates by end-2022 (vs 4 in March) and, most importantly, the median dot now seeing two hikes by end-2023.
  • The e-mini S&P is rallying sharply off the initial low at pixel time, rising back above 4,215, minutes after printing session low of 4,190.25.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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