DXY | JPY | CREDIT EVENT | DECRYPTERS Hi People Welcome to Team " DECRYPTERS"
SO we Have 3 Main events this Week Lets Get A DEEP DIVE IN TO THEM
1- FED :- FED RATE HIKES ( PRICED IN ) + PRESS CONFERENCE ( HAWKISH )
AS we predicted Last time what Ever Happen Rate hikes will be increased we still stand by our words . Lets go further Either we are Getting 50 BPS This time or We are Getting 25 BPS next time
WHY Is That So ... ??
The Attached Charts shows the overall level of financial conditions in an economy The conditions are on Same levels When FED was ABOUT to hike Rates Meaning .
Further more —Dot plots , Fed curves ,GSUSCFI Index and Bloom Berg Index & Fall in Credit spread "ALL" Indicating ease in financial system Meaning this Data provide Evidence that FED Can increase More Interest Rates As Credit spread also falling to positive signal for economy
— Rise In commodity Prices Like (RBAB Gasoline) Indicates more higher Prices in Energy sectors.
— Lastly Good inflation trading above 20 years average & CPI Also printing higher on Y/Y Basis.
2- EURO RATE HIKES :-
THIS comes With same Expectations Rate hikes + Hawkish Stance with & Lagarde speech.
Lets Discuss JPY NEWS ON FRIDAY
3- BOJ REPORT :-
A surprise can be Expected From Other Side Like
They can Increase the range of "10 -years JGB" 50 BPS TO 75 /100 BPS
( BOND BUYING BACK PROGRAM) This will Cause bonds Prices to Rise / Yields to Fall &
"JPY TO GET WEAKEN"
—Other yield can React Negatively To IT ( LIKE US -10 YEAR)
