LIVE analysis from Head of Market Analysis Anthony Cheung as he explains the two-way price action seen after the release of the January 2022 statement from the FOMC and subsequent press conference with Fed Chair Jerome Powell.
The Fed left interest rates on hold as expected by gave the necessary signal for rates to rise in March. Details on balance sheet plans were light and the surprise comment was that Powell did not rule out raising rates at every FOMC meeting (note there are 7 more meetings in 2022).
The option to raise rates more aggressively saw the US Dollar and yields spike higher and put stock futures, major currency pairs, and gold futures under pressure.
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EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
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Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
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