The Fed will release a policy statement at 2 pm Eastern Time on the 22nd, followed by Chairman Powell's press conference.

(Reuters)

[Financial Channel/Comprehensive Report] There are less than 12 hours left before the US Federal Reserve (Fed) announces its interest rate policy decision. Investors are trying to make some risky rebounds, and the dollar is also weaker.

The U.S. dollar hit a near five-week low on Wednesday (22nd), as investors waited for clarity on the Fed's possible policy.

The Fed will release a policy statement at 2:00 pm Eastern Time on the 22nd (2:00 am Taipei Time on the 23rd), followed by Chairman Jerome Powell's press conference.

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Traders are pricing in an 85 percent chance of a 25 basis point rate hike in the U.S. and a 15 percent chance of no rate hike.

Just a month ago, markets were pricing in a 24 percent chance of a 50 basis point hike.

The MSCI ex-Japan index rose 1.3% today, with the dollar and gold trading in a tight range; futures suggest European stocks may join the rally.

European stock futures and Asian stock markets climbed ahead of the U.S. announcement on whether to raise interest rates, with Euro Stoxx 50 futures up about 0.2 percent, putting the index on track for a third straight day of gains.

Stocks in China, Japan and Australia climbed after gains on Wall Street on Tuesday.

The S&P 500 rose 1.3%, while the tech-heavy Nasdaq 100 gained 1.4%

After the turmoil in the global banking industry, investors are concerned about whether the United States will stick to a hawkish line to fight inflation or suspend interest rate hikes, and consider the recent bankruptcies and last-minute bailouts.

The dollar index , which measures the greenback against a basket of six currencies, was at 103.19, just above a five-week low of 102.99 hit overnight.

The euro traded at $1.0770, hovering near a five-week high of $1.0789 hit overnight.

U.S. Treasury Secretary Janet Yellen told bankers to prepare interventions to protect depositors at smaller lenders, an announcement that helped calm some nerves in markets even as troubled First Republic continued to fight to secure capital injections.

The collapse of Silicon Valley Bank kicked off a turbulent 10 days for banks as investors remained concerned about a global economic meltdown as surging interest rates weighed heavily on bond-related losses.

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