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The USD is the strongest and the GBP is the weakest as the North American session begins | Forexlive

The Federal Reserve raised rates by 75 basis points as expected yesterday, and included some extra words saying:

  • In determining the pace of future increases in the target range, the committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation and economic and financial developments

The market interpreted as more dovish at first, but after chair Powell started his press conference, it became clear that at least the Fed chairs not ready to slowdown from putting on the brakes. That sent the US dollar higher in that momentum has continued in trading here today. The US dollar is the strongest of the major currency pairs while the GBP is the weakest ahead of its interest rate decision. The Bank of England is expected to raise rates by 75 basis points as well, but investors are less hopeful for the UK economy is it runs toward the recession a bit faster.

US stocks are lower in premarket trading after yesterday’s sharp declines led by the NASDAQ index (-3.36%). Yields are running to the upside.

in other markets:

  • Spot gold is trading down $16.95 -1.04% at $1618.40.
  • Spot silver is trading down $0.32 are -1.68% at $18.88.
  • WTI crude oil is trading at $88.74 down at 1.26%
  • Bitcoin is trading at $20,110 him

In the premarket for US stocks, the major indices are all trading lower:

  • Dow industrial average is down 190 points after yesterdays -505.44 point decline
  • S&P index is trading down -29 points after yesterdays -96.43 point decline
  • NASDAQ index is down -115 points after yesterdays -366.05 point decline

In the European equity markets, the major indices are also trading lower

  • German DAX -1.22%
  • France’s CAC -0.85%
  • UK’s FTSE 100 -0.79%
  • Spain’s Ibex -1.78%
  • Italy’s FTSE MIB -0.86%

In the US debt market, yields have continued its run back to the upside. The 2 year yield traded as low as 4.266% last Friday. It is currently back up at 4.713%. The 10 year yield has moved up from a October 22 low of 3.9%. It is currently at 4.183%.

In the European debt market, the benchmark 10 year yields are sharply higher: