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| EUR/USD four-hour chart, source:FXDD.com |
cf. [EUR] Omicron, Inflation and Fluctuating Euro 2021 1202
cf. [EUR] New Variant and the Strong Safe-haven Asset 2021 1128 https://youtu.be/PPfYePfIV4I
The reports from Gjallarhorn are produced by a trader, not by an analyst. The reports are provided to the investors showing the trader's view on the market.
Gjallarhorn has no postion just watching the market.
The currency pair EUR/USD fluctuates in the channel without the explicit trend.
The currency pair is still bearish and on the upward trend line in the weekly chart. The pair is supported the trend line yet.
But the euro fluctuates in the narrow channel in the daily and the hours charts.
It is recommended just to watch the market for a while.
The Dollar Index tracking the dollar against the currency basket composed of the six major currencies fell 0.23 percent to 96.365.
The Federal Reserve reconfirmed its hawkish stance after the FOMC meeting. The inflation risk was high, FOMC members thought.
The word 'transitory' which had expressed the inflation was deleted in this FOMC statement. The Fed had spoken the inflation was transitory.
Fed decided to freeze the benchmark interest rate but double the tapering size to 30 billion dollar a month while the FOMC meeting. It is expected the tapering is completed in March, 2022.
The released dot diagram has made the market expects the three-times interest rate hike in the next year.
The Fed Chair, Jerome Powell spoke the economy growth and prospect adjustment made the revision of the currency policy while the press conference after the FOMC meeting.
The economy news agency Bloomberg evaluated this Fed's policy in this year was most hawkish.
The market experts in the major investment banks anticipate the first interest-rate hike in next March, in which the tapering will be completed.
And they expect the interest hike will be done three times in the next year according to Bank of Korea.
The analysts at Bank of America expected the interest rate would be risen 0.25 percent point, nine times from 2022. The specialists at Citi Bank anticipated so, too.
The Forex market is stable though the Fed showed hawkish policies. The market specialists analysed the Fed moved in the anticipated range and the uncertainty had been cleared.
Some analysts think the risk-on sentiment will be back.
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Gjallahorn produces the reports by the trader. And the reports reflect the trader's view.
Gjallarhorn does not provide any signals, but tries for traders to get the insight into the market.
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