USDJPY Consolidates After BOJ Intervention

The Japanese yen recovered some losses after the Bank of Japan intervened in the currency market for the first time since 1998. The central bank increased its currency in an attempt to ease imported inflationary pressures. However, this symbolic move can only bring relief to the battered yen and is unlikely to change the current trend. Policymakers have pursued loose policies to prop up a shaky recovery, in a counter-move to a global race to tighten financial conditions. The yield gap between Japan and the US could still favor the latter’s currency. August 1998 high 147.50 this is the next hurdle and 139.00 closest support.

EURUSD slips as Fed remains hawkish

The US dollar soared to a two-decade high after the Fed raised interest rates by another 75 basis points. Officials promise more such increases before the end of the year. Updated forecasts for US rates show 4.4% by the end of the year, a full percentage point higher than last June’s forecast. In Europe, the slowdown in economic growth, the energy burden and the escalation in Ukraine may keep traders away from the single currency. This divergence mirrors the fate of other riskier currencies. In a world full of uncertainty, high yields and safety increase the dollar’s relative appeal. The pair glides towards it 0.9600 after limiting in 1.0040.

UKOIL softens as global growth comes under threat

Brent crude is struggling due to geopolitical tensions and demand uncertainty. Russia has announced the mobilization of additional troops as part of the escalation of the conflict in Ukraine. Additional sanctions can be expected from the West, as well as retribution from Russia in the supply of energy carriers. Meanwhile, Washington reported little progress in renewing the 2015 Iran nuclear deal. A stalemate could keep the market tight. However, the global race to contain inflation is making growth collateral damage. Weakening demand and reduced risk appetite may continue to fuel the correction. The price fluctuates higher 84.00 and 105.00 is an important chap.

NAS 100 is experiencing difficulties as the rates do not yet have a ceiling

Nasdaq 100 drops further as Fed reaffirms its tightening roadmap. With the economy taking second place to monetary policy, investors fear the window for a “soft landing” may be closing. The question will shift from whether a recession is imminent to how long it will last. The central bank reiterated that this would affect growth and jobs. A strong labor market can act as a cushion, allowing policymakers to aggressively push the tightening agenda. Growth stock investors will need to remain patient as rate cuts aren’t expected until 2024. Index swings higher 11100 with 12000 as the first resistance.

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