Themes

• General mood is “risk off”
• Fed announced 75 bps rate hike more than the market expected 50 bps, this was the largest increase since 1994.
• US retail sales missed the expected 0.1% but printed at -0.3%, and 0.5% for core vs 0.7% expected.
• Crude oil inventory increased by 2.0M more than forecasted a decrease of 2.3M.

What’s Moving

Major currency appreciated against US dollars after the FOMC. With the largest rate hike since 1994, Fed announced an increase of 75bps.

Crude oil broke down and closed below 116.00 after an increase in inventory reported. The upward trend may change to downward if we break 115.00 on daily chart.

Gold dipped down and buyers defended the support level at 1805.00. With bullish momentum pushed and finally closed above 1830.00.

Thoughts

BoE will announce the official bank rate today. Market expected an increase of 25 bps, so keep an eye on GBP vs weak currency, especially the yen. US unemployment claim is another big event to pay attention later today, any bullish figure could attract USD buyers back.

Keep an eye on the following event coming soon:

• UK Monetary Policy Summary
• UK Official Bank Rate
• US Unemployment Claims

Pivot Points