The projected slowdown in rate hikes | 30 November 2022

30 November 2022, USD/JPY

The projected slowdown in rate hikes

USDJPY trading plan:

Benchmark U.S. Treasury 10-year yield will fall next year as the Federal Reserve slots monetary tightening and eventually cuts interest rates to stimulate a dwindling economy. The U.S. economy will enter a recession around the middle of next year, pushing the Fed to cut rates at the end of 2023 and sending yields - which move inversely to prices - lower across the curve. The Fed is likely going to show signs of becoming successful in their attempt to rein in inflation by softening the labor market. The Fed has raised interest rates by 375 basis points so far this year as it attempts to bring down the highest inflation in decades.

Investment idea: buy 138.20 and take profit 139.20.

David Johnson
Analyst of «FreshForex» company
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