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Dollar climbs after Fed signals 2022 rate hike

“What the mind of man can conceive and believe, it can achieve.” – Napoleon Hill

 

 

HEADLINES

 

 

  • FOMC teases start of taper "soon"
  • U.S. dollar climbs after Fed decision
  • Energy Price Jump Hijacks EU Debate on Green Overhaul
  • Oil Rises With Shrinking U.S. Supplies and Broader Market Gain
  • S&P 500 Rallies, Takes Fed November Taper Signal in Stride
  • Ackman's Pershing Square fund surges as Universal soars in stock debut
  • Fed’s Powell Says CBDC Report Coming ‘Soon’

 

 

FOREX

 

 

FOMC teases start of taper "soon"

 

The Federal Reserve on Wednesday cleared the way to reduce its monthly bond purchases "soon" and signalled interest rate increases may follow more quickly than expected, with nine of 18 U.S. central bank policymakers projecting borrowing costs will need to rise in 2022.

The actions, which were included in the Fed's latest policy statement and separate economic projections, represent a hawkish tilt by a central bank that sees inflation running this year at 4.2%, more than double its target rate, and is positioning itself to act against it.

 

U.S. dollar climbs after Fed decision

 

The U.S. dollar appreciated in late trading on Wednesday as market participants digested the latest decision from the Federal Reserve. The dollar index, which measures the greenback against six major peers, increased 0.29 percent at 93.4733.

 

 

COMMODITIES

 

 

Energy Price Jump Hijacks EU Debate on Green Overhaul

 

The unprecedented spike in natural gas and power prices is forcing its way up the European Union’s political agenda after hijacking a meeting of member states on the bloc’s ambitious transition to a green economy. Ministers from most of the region’s 27 nations, from Sweden to Greece, voiced concerns at their gathering in Slovenia on Wednesday about energy prices hitting all-time highs.

 

Oil Rises With Shrinking U.S. Supplies and Broader Market Gain

 

Oil advanced after U.S. crude inventories slid to the lowest since October 2018 amid a global energy crunch expected to increase demand. Futures in New York rose 2.5% on Wednesday. Domestic crude stockpiles fell for a seventh straight week to about 414 million barrels, according to an Energy Information Administration report.

 

 

STOCKS

 

 

S&P 500 Rallies, Takes Fed November Taper Signal in Stride

 

The S&P 500 climbed Wednesday, led by energy and financials as the broader market took the Fed's signal of a potential November taper in its stride. “If progress continues broadly as expected the Committee judges that a moderation in the pace of asset purchases may soon be warranted,” the Fed said in a statement.

 

Ackman's Pershing Square fund surges as Universal soars in stock debut

 

Hedge fund manager William Ackman's 10% bet on Universal Music Group (AS:UMG) helped nearly double returns at his own portfolio to 15.3% this week after shares in the world's biggest music label surged in their first hours as a publicly traded company.

 

 

CRYPTO

 

 

Fed’s Powell Says CBDC Report Coming ‘Soon’

 

The Federal Reserve’s report on Central Bank Digital Currencies (CBDCs), stablecoins, and cryptocurrencies is coming “soon,” according to the central bank’s chair, Jerome Powell. The report was initially slated to come at the beginning of the summer. Powell later revised that timeline to sometime in September. During a press conference Wednesday about the Federal Open Market Committee’s (FOMC) interest rate decision, Powell did not say whether the report would still come this month.

 

 

CHART

 

 

US dollar / Chinese yuan – Daily Candlesticks

Source: GKFX Prime Metatrader 4

USD/CNH has for the time being successfully tested previously broken support at 6.45. A move back above the 200 DMA and falling trendline would confirm a new uptrend. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.investing.com/news/stock-market-news/sp-500-rallies-ahead-of-fed-decision-2623713
https://www.fxstreet.com/news/fed-leaves-policy-rate-unchanged-judges-asset-tapering-may-soon-be-warranted-202109221807
https://www.investing.com/news/stock-market-news/ackmans-pershing-square-fund-surges-as-universal-soars-in-stock-debut-2623856
https://finance.yahoo.com/news/oil-surges-report-shows-big-060227431.html
https://finance.yahoo.com/news/energy-price-jump-hijacks-eu-181139617.html

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