Fed minutes released on Wednesday weren’t as hawkish as many investors feared: the Fed deciders mostly agreed that inflation is too high and labour market is too tight and that they should raise the rates by 50bps for the next two meetings. But, there was no sign that the Fed would go down the 75bp hike road.
US Indices, EUR/USD And Gold Price
US indices gained for the second day as the FOMC minutes helped improving the investor mood. Nvidia jumped. But the futures are slightly in the negative at the time of writing, as the rally in energy prices certainly throw a shadow on the latest optimism, keeping the inflation worries tight, as the soaring energy prices are one of the major responsible for the skyrocketing inflation. The barrel of US crude rallied above the $115 mark, and consolidates above this level this morning. The US dollar continues softening, the EURUSD tests 1.0750 offers, gold remains bid above the 200-dma though with a fading positive momentum.
Turkish Lira (TRY)
The lira, on the other remains, and should remain under decent negative pressure as the central bank insists keeping its policy rate at 14% level. And finally, Bitcoin slides below the $30K mark as the ECB points to financial stability concerns due to cryptocurrencies.
Read next: Altcoins: Tether (USDT), What Is It? - A Deeper Look Into The Tether Blockchain| FXMAG.COM
Watch the full episode to find out more!
- 0:00 Intro
- 0:32 Fed is not 'that' hawkish after all!
- 2:54 Market update
- 4:19 Dark clouds above our head
- 5:17 Citi says 'buy the dip' in European & EM stocks
- 7:14 I say 'be careful' with Turkish BIST & the lira
- 9:00 FX, commodity update: EUR, Gold and Bitcoin
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.