The last raise of Fed’s interest rate seems to be tip of the iceberg as hawkish rhetoric is vivid in following Jerome Powell’s testimonies. Inflation is still here and according to Investing.com Goldman Sachs predicts that Fed’s next moves are 50bps raises in the two following months.
As we’re waiting for tomorrows midday (GMT) which is the time Fed Chairman speaks, let’s review how have most traded, dollar-based pairs traded over last 24 hours.
Morning declines appear to be only temporary, USD has weakened in the afternoon and slightly decreased as the pair gained 0.1% until now.
The pair has gained ca. 0.6% and can be threated as a ‘trailer’ of the dollar strengthening later this week.
After today’s news about Russian-Japanese end of negotiations considering official truce of World War II (!) and ongoing hawkish Fed’s rhetoric Japanese yen has weakened and the pair has gained ca. 1.1%
Exotic pair shows an interesting performance once again after an increase of over 0.4% USDPLN has decreased by over 0.5% as the pair seems to be affected by many factors as the country lies close to Ukraine and had its interest rate increased two weeks ago.
Source/Data: Investing.com, TradingView.com
Charts: Courtesy of TradingView.com