🇺🇸 US FOMC votes unanimously to raise rates to 4.00%
“Dot plot” of rate projections shows 16 of 18 officials expect to raise interest rates at least one more time by the end of 2026, with four penciling in two additional rate hikes
$Dxy $EurUsd
Two charts sending a very clear warning this morning
Unless monetary authorities somehow crush $WTI back below 93.50, the $Dxy is set for the mother of all short covering rallies & US Indices are heading for a Bear market
🇯🇵 The Bank of Japan has kept its benchmark rate unchanged at 1% as expected
The Central Bank also:
🔸 Raised its 2026 & 2027 GDP forecast by +0.1%
🔸 Lowered its inflation forecast to 2.5% from 2.8%
$UsdJpy
🇯🇵 The Japanese Yen surges more than 3% against the US dollar, marking its biggest jump since December 2023 and stoking speculation that Japanese officials have once again intervened in the market
$UsdJpy
A major warning sign yesterday was equities selling off as the $Dxy tanked
Risk off flows came into Forex as well, despite a weaker USD ($EurNzd higher as an example)
It means big players booked profits into the USD sell off - Surprise BOJ Hike coming?