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Market Update: USD Rally Post FOMC

June 17, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, in today’s video update, we run over the strong USD rally we saw early this morning after the main financial event of the week – the FOMC meeting.

The surprise from this morning’s FOMC was an expectation of rate rises sooner than expected. 2023 suggested when we could see FED rate hikes.

This news opens up the current comments about inflation being temporary. Why would we see rate hikes if inflation is not here to stay? If we do see rate hikes in 2023 what happens to the current bond-buying program? There’s were no new comments about it or tapering this morning but if we do see rate hikes, will we see tapering?

We take a look at technical action and levels we’re watching on the USDCHF, EURUSD, Gold and on the AUDUSD. The Aussie Dollar was influenced but is also under a different pressure from China as the world’s second-largest economy continues to talk about ways to hold back higher commodity prices.

Market Update 

 

All times are AEDT.