The Fed is due to announce its policy decision | 21 Septiembre 2022

21 Septiembre 2022, EUR/USD

The Fed is due to announce its policy decision

EURUSD trading plan:

The yield on two-year U.S. Treasury notes, a rough gauge of interest rate expectations, rose to almost a 15-year high, a day before the Federal Reserve is likely to hike rates by 75 basis points as it continues to fight inflation. The two-year is highly sensitive to shifts in monetary policy expectations and early it hit 3.99%. The last time its yield broke above 4% was Oct. 18, 2007. The Fed is due to announce its latest policy decision on Wednesday. Money markets are fully pricing in a 75-basis point rate hike, with the chance of a larger full-point rate hike fading to just 16%, according to CME's FedWatch tool. The closely watched gap between two- and 10-year yields earlier reached a discount of as much as -47.5 basis points, approaching its most negative since Aug. 10 when the discount widened to -56.2 basis points. The gap later narrowed to -39.8 basis points.

Investment idea: sell 0.9945 and take profit 0.9868.

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