From Marc Chandler at Bannockburn Global Forex:
The Federal Reserve delivered a hawkish hold yesterday. The jump in US rates spurred a strong dollar advance that has been extended a little today. The new Fed chair received mostly high marks and dealt a blow to those narratives that saw him as beholden to the president’s wishes. He repeatedly underscored his and the Fed’s commitment to price stability. Warsh appears to harken back to Greenspan’s era before greater transparency replaced ambiguity in the communication. Less is more. On Tuesday, the Fed funds futures were discounting 21 bp of tightening this year, and now it is near 40 bp.
Three other G10 central banks met today, Norway’s Norges Bank, the Swiss National Bank, and the Bank of England. All three kept policy unchanged. Norway signaled another hike is likely this year. The swaps market has it discounted for September. The Swiss National Bank kept its deposit rate at zero. The BOE’s target rate remained at 3.75% and the swaps market anticipates at least one hike by year end. Today’s byelection in Makerfield will shape the near-term course of national politics and set the stage for a formal challenge to Prime Minister Starmer. Lastly, reports indicate ships are beginning to transit the Strait of Hormuz and oil prices are extended their slide....
....MUCH MORE
Last I saw the DXY futures were at 100.51.
