The Fed is still focused on tackling inflation | 06 May 2022

06 May 2022, USD/JPY

The Fed is still focused on tackling inflation

USDJPY trading plan:

Futures on the federal funds rate priced in on Thursday a roughly 75% chance of a three quarters of a percentage point tightening by the Federal Reserve at next month's policy meeting. Rate futures have also factored in more than 200 bps of cumulative hikes for 2022 and a year-end fed funds rate at 2.85%. "And though Powell dismissed notions of a 75-bps hike, the FOMC is still on the march and looks to boost the funds rate up to 2.625% to year-end. The Fed is still focused on tackling inflation, while growth is still decent this year and this just gives the Fed the opportunity to continue to keep raising rates."

Investment idea: buy 130.31 and take profit 130.94.

David Johnson
Analyst of «FreshForex» company
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