Fed raise the interest rate by 25bps as expected

　　

Stay ahead of the game with today’s market insights brought to you by the expert team at vtmarkets.com.

The Dow closed flat Wednesday, as investors weighed up the Federal Reverse’s widely expected quarter-point rate hike and Fed Chairman Jerome Powell’s lack of pushback on the recent rally in stocks and easing financial conditions. 

The Dow Jones Industrial Average was up 0.02%, or 6 points, the S&P 500 rose 1.1%, and the Nasdaq Composite rose 2%.

On the economic front, data continued to show the labor market running hot. Weekly job openings and the December private jobs report came in better than expected, threatening to boost wage pressures and inflation.

Monetary policy decisions from other major central banks and US Nonfarm Payrolls will be crucial for clear directions.

The energy was the only sector in the red, falling more than 2% as oil prices fell after U.S. weekly crude stockpiles increased more than expected and OPEC and its allies stuck with their output policy unchanged. Final return rate at -1.89%.

Main Pairs Movement

DXY holds lower grounds near 100.90 as traders lick their wounds near the lowest levels since April 2022 during Thursday’s Asian session. At the time of writing, the DXY price at 102.205, dropped around 0.9% on the daily chart.

EUR/USD bulls cheer the Federal Reserve’s acceptance of easing price pressure, as well as Chairman Jerome Powell’s readiness for rate cuts if needed, by rising the most since November 2022 to poke the highest levels in 10 months, making rounds to 1.1000.

GBP/USD rallied overnight on US Dollar weakness following the Federal Reserve event. The pair burst through 1.2350 resistance. GBP/USD now depends on the Bank of England and US jobs data on Friday. At the time of writing, the price at 1.23822.

Gold price makes rounds to the highest levels since late April 2022, close to $1,955 during the mid-Asian session on Thursday. At the time of writing, the price trades at 1955.06.

Economic Data

Currency	Data	Time (GMT + 8)	Forecast
GBP	BoE Interest Rate Decision (Jan)	20:00	4.00%
GBP	BoE MPC Meeting Minutes	20:00
EUR	Deposit Facility Rate (Feb)	21:15	2.50%
EUR	ECB Marginal Lending Facility	21:15
EUR	ECB Monetary Policy Statement	21:15
EUR	ECB Interest Rate Decision (Feb)	21:15	3.00%
USD	Initial Jobless Claims	21:30	200K
EUR	ECB Press Conference	21:45
GBP	BoE Gov Bailey Speaks	22:15
EUR	ECB President Lagarde Speaks	23:15

Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.