Fed rate will peak in September | 15 Junio 2023

15 Junio 2023, USD/JPY

USDJPY trading plan:

Federal Reserve Chair Jerome Powell said the central bank's next rate-setting meeting in July would be a "live" meeting after officials chose to forego a rate hike in June. The market for wagers on the course of Federal Reserve policy shows that traders now expect the US central bank’s policy rate will peak in September, where they previously looked for it to crest in July. The Fed’s target range for the federal funds rate — which it is expected to leave unchanged at 5%-5.25% at the meeting that concludes at 2 p.m. in Washington — has resulted in an actual rate of 5.08%. The highest rate on swap contracts for future meetings was about 5.29% in September on Wednesday morning, with the July contract’s rate 5.28%. As recently as Tuesday the July contract’s rate was higher, anticipating no rate increases after that point. Meetings are scheduled for July 26 and Sept. 20.

Investment idea: buy 140.60 and take profit 141.35.

David Johnson
Analyst of «FreshForex» company
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