Thursday 21 September. Post FOMC.

As expected, the federal reserve delivered a 'hawkish hold'. The market was a little surprised by the projected 2024 end of year rate of 5.1%. It had been widely thought multiple rate cuts would come next year, but cold water has been thrown on that idea. The US 10year yield is above 4.4 at the highest level since 2007. The S&P is under pressure and a long dollar bias remains intact. It is a case of deciding when to place a trade and against what?. The obvious Pair is USD JPY  ( although the higher the price gets, the more imenent the threat of BOJ intervention. I also think the EUR is starting to look vulnerable following last week's 'dovish hike'. With the BOE rate decision due in a couple of hours, my current decision is to wait and see the outcome before forming a conviction in a trade.

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