📆 Markets wait for Powell's presser after 'hawkish' 25 bp rate hike
The Federal Reserve delivered a 25 basis point rate hike. While this was the second slowdown in rate hike cycle in a row, market reaction shows that it was seen as hawkish. This is because there were no mentions or hints at a possible end of the rate hike cycle in the United States. Fed repeated in a statement that ongoing rate increases are appropriate and did not signaled that it plans to stop hiking anytime soon. Market continues to price in only one more 25 basis point rate hike after today and if this is true, some hints from Fed would be more than welcome. Having said that, attention turns to press conference of Fed Chair that is set to begin at 7:30 pm GMT with journalists likely to pressure Powell whether more hikes are coming. A live coverage of Powell's press conference will be available in 'News' section on xStation platform.
US dollar gained and US equity indices dropped following FOMC rate announcement. However, Wall Street has managed to fully recover from those losses already with US500 trading around 10 points above pre-announcement levels. EURUSD managed to recover back above 1.09 handle and trades near pre-announcement levels.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appEURUSD experienced wild swings after Fed decision but is ultimately trading little changed compared to pre-announcement levels. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.