“It’s probably a pause because we have the Fed and then the three European central banks tomorrow,” said Vassili Serebriakov, a currency strategist at UBS in New York. “I think the markets are going to wait patiently for the results.”
Initially, riskier assets such as stocks fell out of favor, while the dollar rallied before changing course again as Fed Chairman Jerome Powell answered questions.
The Fed projected at least an additional 75 basis points of increase in borrowing costs by the end of 2023, as well as an increase in unemployment and an almost total stagnation of economic growth.
Next, investors will focus on Thursday’s quotes for the Bank of England and the European Central Bank, in which a rate increase of 50 bp is also expected. The Swiss National Bank also meets on Thursday.
The euro was up 0.43% against the dollar at $1.0674. The dollar was down 0.24% at 135,235 yen.
Sterling also recovered lost ground against the greenback and was up 0.54% at $1.2429.
Source: Ambito
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