The Fed hopes tighten financial conditions | 23 Tháng sáu 2022

23 Tháng sáu 2022, USD/JPY

USDJPY trading plan:

The Federal Reserve is "strongly committed" to bringing down inflation that is running at a 40-year high and policymakers are acting "expeditiously to do so," U.S. central bank chief Jerome Powell said. "It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all," Powell said in a prepared remarks for a hearing before the U.S. Senate Banking Committee. In a question-and-answer session, Powell declined to rule out a 100 basis-point rate hike, saying he would not take any specific size of rate hike "off the table" as the central bank works to contain inflation. One of the most important comments that Powell made today is that dollar appreciation is one of the channels through which the Fed hopes would tighten financial conditions. It's certainly an endorsement of further dollar strengthening to think that there won't be any type of moves to ease the dollar's gains.

Investment idea: buy 135.60 and take profit 136.30.

David Johnson
Analyst of «FreshForex» company
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