USD/JPY pulled back post FOMC, but with further improvements expected in U.S. data, the losses should be limited.
Can risk trades carry on? Based on today’s FOMC, the answer is yes, but the overextended moves in currency pairs, such as EUR/USD, AUD/USD, NZD/USD and USD/CAD begs for a correction. For the past few weeks, investors have been driving currencies and equities higher on the premise that the worst is over and Powell’s comments along with the FOMC projections suggests that the central bank shares these views.
Can risk trades carry on? Based on today’s FOMC, the answer is yes, but the overextended moves in currency pairs, such as EUR/USD, AUD/USD, NZD/USD and USD/CAD begs for a correction. For the past few weeks, investors have been driving currencies and equities higher on the premise that the worst is over and Powell’s comments along with the FOMC projections suggests that the central bank shares these views.