USD gains, indices drop on hawkish FOMC dot-plot
Fed kept interest rates unchanged in 5.25-5.50% range, as expected. Statement repeated that central bank needs to have greater confidence in inflation returning to target before cutting rates. New dot-plot showed just a single rate cut for this year, compared to three in March projections. However, split between FOMC members who saw 1 and 2 cuts was almost equal. Nevertheless, the announcement was fairly hawkish, and triggered a hawkish reaction in the markets - USD gained while gold and US indices moved lower. However, scale of the moves was rather moderate.
Markets now await post-meeting press conference of Fed Chair Powell, which is set to begin at 7:30 pm BST. Live coverage of the event will be available in News section at xStation.
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Create account Try a demo Download mobile app Download mobile appEURUSD dropped and moved back below 200-hour moving average (purple line). However, the pair is still trading well above levels from before CPI release. Source: xStation5
GOLD also dropped below 200-hour moving average (purple line) and tested $2,325 per ounce support zone. However, bulls managed to defend the area and part of the drop has been recovered already. Source: xStation5
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