USD Pressured As FOMC Falls Short Of Hawkish Expectations
Heading into today’s Asia-Pacific trading session, the risk tone is mixed. Asia-Pacific indices are positive, yet measures of volatility are elevated and safe-havens mixed.
Leading Asia-Pacific indices to the upside is the ASX 200 at +0.85%, followed by the Hang Seng at +0.62% and the CSI 300 at +0.34%. The Nikkei 225 and Topix remain closed as Japan observes its Children’s Day bank holiday.
In the FX complex, the dominant focus remains on USD following yesterday’s FOMC meeting. The central bank delivered a 50 basis point rate hike as expected but still fell short of market expectations as Fed Chair Powell pushed back against speculation of a further 75 basis point rate hike by July.
Leading the majors to the upside is CAD as oil prices continue their steady grind higher, with WTI approaching $109.00 per barrel. Consequently, USDCAD has extended beyond its post-FOMC lows, while GBPCAD has slipped below support at the 1.60 handle.
Looking ahead, expect GBP to remain in focus throughout the day as attention turns towards the BoE’s latest policy decision late in today’s European trading session.
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First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, Vc0100, Saint Vincent & the Grenadines.
+44 (745) 814 8133 , +44 (204) 577 3336
+44 (204) 577 3336 www.ClimaxPrime.org [email protected]
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