Major FX was relatively subdued during the session here today, the obvious reason being traders await the outcome of the Federal Open Market Committe
Major
FX was relatively subdued during the session here today, the obvious
reason being traders await the outcome of the Federal Open Market
Committee (FOMC) monetary policy meeting. There are links to previews
in the points to posts above, and links to further previews in those
posts. TL;DR is that a 75bp rate hike is widely expected, taking the
target range of 3.0% to 3.25%. That would also put the Fed in
restrictive policy. Also in focus will be the dot plot and central
tendencies. Where does the Fed see the terminal rate to be and are
lower rates seen in 2023 or later? More on the dot plot is here:
While
the majors tracked sideways not so the yuan. It continued its slide.
China’s economy is being pounded by ongoing rolling lockdowns due
to its Zero Covid policy, a collapsed debt-ridden property market
and, until recently, power shortages. The yuan is bearing the brunt.
Offshore yuan fell again today to USD/CNY circa 7.05.
Ahead of the FOMC Russian President Putin is speaking, at 8am in Moscow.
After the FOMC, Thursday Asia time, is the Bank of Japan policy statement. The Bank was in buying JGBs aggressively today, trying to drive down higher yields. This is not a sign of a Bank about to withdraw from super-easy policy any time soon.
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