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BREAKING: Ukraine fired one of its largest drone attacks ever, estimated to include 1,600+ drones, targeting the Moscow region and hitting the city's main oil refinery.
This comes just 6 days after President Trump said Ukraine and Russia agreed not to hit energy targets in an effort to lower diesel prices.
The site that was struck supplies more than 33% of the Moscow region's fuel and is currently on fire.
Oil markets are set to open in 10 hours.
YEN CARRY TRADE UNWIND JUST GOT DELAYED.
USD/JPY almost hit 158, despite the BOJ's 25 BPS rate hike and even hints of more rate hikes.
But shouldn't a BOJ rate hike strengthen the yen?
It often does, but this time there's one different thing that happened.
The Fed also did a rate hike, with one more hike expected this month.
This means the rate gap between the US and Japan isn't shrinking, and borrowing yen is still profitable.
And now this will put the BOJ in a huge dilemma.
If rate hikes can't strengthen the yen, Japan is left with only the intervention option.
And for that, BOJ will likely dump US treasuries, which will put upward pressure on US bond yields and make the rate gap even bigger, thereby continuing the yen carry trade and leading to further yen devaluation.
Japan just HIKEd rates.
The yen got WEAKER.
And that is exactly why trading the headline gets people killed.
The BOJ took rates to 1.25%.
But the hike was already priced.
What was NOT priced as cleanly was the vote.
Two members dissented.
That matters because the market instantly asked a different question...
How much more can they actually tighten from here?
The answer suddenly looked less certain.
So instead of buying yen on the hike, traders cut expectations for the NEXT hike.
Japanese 2Y yields fell.
USDJPY pushed back above 157.
Simple version:
The BOJ raised rates.
But the market heard...
They might not be able to keep doing this aggressively.
That is why the yen weakened.
The decision was hawkish.
The path looked softer.
Markets trade the path.
The Fed made a very clear statement today.
Not only did they hike interest rates, but it was a 12-0 unanimous decision.
This marks the first unanimous Fed decision since May 2025, amid calls from President Trump to cut rates.
And, the Fed concluded their policy statement by saying, "The Committee will deliver price stability," making it clear that inflation is their top priority.
The question now becomes: How does President Trump respond?
12 days ago, President Trump said he would "stop trading" with 50+ US trade partners if the Fed does not cut rates.
Today, the Fed not only avoided cutting rates, they hiked them.
Clearly, the divide between the White House and the Fed is widening, even with Jerome Powell out.
More to come.
BREAKING: The Federal Reserve officially hikes interest rates by 25 basis points, marking its first rate hike since July 2023.
This ends the longest Fed interest rate pause since 2008.
🚨 SCAM EXPOSED 🚨
Sit down and give it a read.
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I knew I had never done anything wrong, and FundingPips is not a company that bans traders who did nothing wrong - unlike some other prop firms.
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I immediately messaged @avikkfp bhaiya, and within 5 minutes, he personally looked into the matter and helped me.
Be aware, guys. 'Don’t share your email publicly online. In my case, I might have shared my email on my Discord, and this low-life scammer got hold of it and sent me this fake email.'
Again, a big thanks to @fundingpips and @avikkfp for helping me 🫶
With FundingPips, if you’re legit, you never have to worry. ❤️
The Fed can HIKE rates today… and the US 10Y can STILL go higher.
That sounds backwards.
It isn’t.
Markets already price roughly a 92% chance of a hike.
The US 10Y has already hit 5.04%, its highest since 2007.
Here’s the bit traders need to understand.
The Fed controls the very short end.
It does NOT directly control what investors demand to lend America money for 10 years.
So imagine this:
Fed hikes.
But oil stays around $100+.
Inflation risk stays elevated.
Government borrowing remains huge.
Investors can simply say:
Cool. I still want MORE yield.
And the 10Y keeps rising.
THAT would be interesting.
Because tonight I’m not just watching:
Did the Fed hike?
I’m watching whether the bond market actually believes the hike is enough.
Then I watch the dollar.
Then gold.
Then equities.
The Fed makes the decision.
The market tells you whether it mattered.