🔼 US500 gains after Fed decision

USD drops, Wall Street gains after in-line Fed decision

Fed delivered a 25 basis point rate hike as expected. Statement did not bear any major changes - the US central bank will continue to monitor and assess incoming information while making future decisions and will assess the impact of tightening on inflation. Quantitative tightening will continue at previously announced pace. There were no hints that the rate hike cycle is near an end or any note of recent drop in inflation. Today's decision was unanimous. 

Market reaction has been muted at first - USD pulled back while equities swung up and down. EURUSD moved higher later on and is up around 0.2% compared to pre-announcement levels. S&P 500 futures (US500) caught a bid later on as well. We may have wait until Powell's press conference at 7:30 pm BST for more volatility. However, it looks highly likely that he will stick to his previous narrative of at least one more rate hike this year. Depending on how much he stresses it, USD may recover some losses.

US500 caught a bid after Fed decision and is bouncing off the 4,580 pts support and the upward trendline. Index is testing 50-hour moving average (green line). Source: xStation5