The Fed next week will deliver more | 14 September 2022

14 September 2022, USD/JPY

The Fed next week will deliver more

USDJPY trading plan:

U.S. inflation data boosted investor bets that the Federal Reserve will need to stay aggressive in raising interest rates. According to the Labor Department report, U.S. consumer prices unexpectedly rose in August and underlying inflation picked up amid rising costs for rents and healthcare. After the report, interest-rate futures traders dumped any lingering bets on Fed policymakers slowing their rate hike pace when they meet next week. They piled into bets on a third straight 75 basis points hike that would lift the Fed's current 2.25% to 2.5% policy rate range to 3% to 3.25%, and rate contracts now also reflect about one-in-four odds of a surprise full-percentage-point increase at the Sept. 20-21 meeting.

Investment idea: buy 143.20 and take profit 143.80.

David Johnson
Analyst of «FreshForex» company
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