Breaking
Posted 2 hours ago
Fed Chair Warsh Signals Rate Hikes, Bond Markets React Sharply
Federal Reserve Chairman Kevin Warsh signaled a hawkish stance in his debut press conference, pushing traders to price in interest-rate hikes as early as next month. Rate hike expectations surged immediately following his remarks, sending bond yields sharply higher.
The USD is likely to strengthen across major pairs, with EUR/USD and GBP/USD under immediate selling pressure. Traders should watch for volatility in USD/JPY as yield differentials widen — a hawkish Fed pivot of this speed can easily move major pairs well beyond 50 pips.
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