Dollar buying is in progress in the early part of London. In the money market, the US financial authorities are moving to factor in rate hikes five times this year. It seems that he responded to the fact that he did not deny the possibility of a rate hike at each meeting at the Fed Chairman Jerome Powell’s press conference after the US FOMC yesterday. The dollar / yen pair updated its highs to the 115.18 level.
At the Fed Chairman Jerome Powell’s press conference after the FOMC, it was stated that the rate would be raised immediately, suggesting that the rate hike would start in March, as the market expected. However, it seems that the market has decided that it has become more hawkish because the possibility of a rate hike at each meeting was not denied. The market did not respond to the reduction in bond purchases, although it said it would only adjust by reinvesting rather than selling.
The statement that there is a possibility of a rate hike at each meeting seems to be a common phrase when avoiding a statement about the pace of rate hikes. However, it seems to have been over-interpreted in a situation where the market was nervous about how many rate hikes would occur during the year. In addition, it seems that the lack of mention of the rate hike leaves the possibility of a significant rate hike such as 0.5%. If the intention was to avoid market shocks such as the stock market, it would be a bit unreadable.
Stocks are all cheap in the Tokyo and Asian markets. How long will risk aversion pressure continue in the European and US markets after this? It looks like it will be a patience for a while until the storm is over.
The stock market is in shock. Also pay attention to how theUSA stocks will react tonight.
The big trend is to buy USD completely, so I would like to attack the small return by buying USD.