Will the FOMC content lead to a change in the flow?

Good morning everyone. And good evening.

This is Akihiko Momen.

Following yesterday's FRB announcement, the trend toward further hawkishness is continuing. It remains to be seen whether the trend since last summer will reappear.

Interest rates at face value, stocks, and indices are rising. Risk currencies are being bought, and the dollar/yen is falling. Since interest rates are falling, people may buy gold and Bitcoin, as in last summer. If gold breaks clearly out of the one-month moving average, day traders might start buying. Bitcoin, currently forming an inverted head and shoulders pattern on the short term, appears likely to aim for higher highs.

For the time being, stricter measures seem unlikely, but like drugs, their effects gradually become less effective. The extent of asset bubbles in this announcement remains unknown.

The Nikkei 225 CFD is moving above 30,000 yen in after-hours trading. The Dow has updated its record high on CFD as well, and a risk-on trend market may be starting; today’s moves are worth watching. There is already a temporary state of being overly bought, and we still don’t know how the market will react to yesterday’s announcement, so be cautious of chasing highs as usual.

In the forex market, currencies that have recently been sold are expected to be bought back. Depending on yield trends, if a downturn begins, the Dollar Index and the USD/JPY will fall.

I attached a chart for the Euro-Dollar as a reference.

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