The Fed delivering increases | 25 Abril 2022

25 Abril 2022, EUR/USD

The Fed delivering increases

EURUSD trading plan:

Fed Chair Jerome Powell gave a "go" sign to a half-point hike then and signaled he would be open to "front-end loading" the U.S. central bank's retreat from super-easy monetary policy. Those remarks solidified traders' bets on a rise in short-term borrowing costs to the 0.75%-1% range at the Fed's May 3-4 meeting, and sent them newly piling into expectations for bigger hikes in June and July. The Fed's policy rate signaled a more than 80% chance of another 1.5 percentage point increase in the fed funds rate, to the 2%-2.25% range, by the close of the Fed's July 26-27 meeting. But with inflation as high as it is -- consumer prices rose 8.5% last month, well above the Fed's goal of 2% -- some observers say interest rates will need to rise even further for the "real" cost of borrowing to be high enough to start biting into economic activity.

Investment idea: sell 1.0760 and take profit 1.0695.

David Johnson
Analyst of «FreshForex» company
¿De acuerdo con la revisión?
Opinión de los comerciantes:
Close
Iniciar sesión
Su navegador no admite cookies. Si la cookie está desactivada en su navegador de Internet, es posible que tenga problemas con la representación del área Personal. Cómo habilitar el soporte para cookies.
manager photo manager photo
Online-support
Nos complacerá contestar cualquier pregunta que pueda tener

Escribir

Get bonus