Ipek Ozkardeskaya
Swissquote Bank Ltd
The Federal Reserve (Fed) maintained interest rates unchanged, as expected. It revised its growth forecast higher, as expected. The dot plot showed one more rate hike before the end of this year, and less cuts next year.
The Fed announcement was hawkish, without much surprise. The market reaction was smooth and unsurprising, as well. Yields and the dollar gained, stocks fell.
Today, it’s the Bank of England’s (BoE) turn to decide. Up until yesterday, the expectation was an almost certain 25bp hike, but yesterday’s shocker inflation data has shaken these expectations to 50-50.
Elsewhere, the barrel of US crude fell below the $90pb on Wednesday, FedEx topped estimates thanks to UPS strike threat and GM, Ford and Stellantis have until noon tomorrow to avert broader strikes.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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