Forex
The US dollar index is trading lower this morning, as the markets price-in the remarks made by Jerome Powell, during the press conference that followed the announcement of a 75 basis points rate hike late on Wednesday. The rate hike itself was widely expected and already baked into the value of the dollar; the remarks made by Mr. Powell were not. When pressed, the Chairman of the Fed admitted that from this point onwards, the Fed’s actions will be data dependent; this means a shift in the central bank’s stance, with the tacit admission that the pace of tightening will slowdown in the runup to the end of the year.
