Early this morning, the Euro stands weaker against the proud greenback following the hawkish speech from the Feds.
The EUR/USD could not find support, though market sentiments favor a 75 basis-point at next week’s European Central Bank (ECB) meeting after yesterday’s higher than anticipated CPI.
Gold keeps languishing at US$ 1,700 an ounce as the precious metal also fails to find support. In the early hours of today, Loretta Mester, President of the Cleveland Federal Reserve, stated that she saw the Fed’s rate climbing and sustaining 4% without rate cuts or hikes in 2023. Similar comments from board members have followed up on this comment.
The USD/JPY currency pair is at a 24-year high in the Asian Fx market as the Treasury yields are rising. It surprisingly went above 139.50 while the 2-year Treasury note is at a 15-year high, eclipsing 3.5% today.
The Australian dollar also fell below support in the trading session this morning.
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