The Federal Reserve raised interest rates by 25 basis points on Thursday, accompanied by hawkish guidance signaling a potential further hike by year-end. According to FX Street (MUFG), the US Dollar has maintained most of its gains following the FOMC decision and comments from Fed Chair Warsh.
US equity futures responded positively, with Dow Jones futures rising 0.82% to near 51,930, S&P 500 futures up 0.82% to around 7,620, and Nasdaq 100 futures advancing 0.98% to about 29,250 during European trading hours, as reported by FX Street (Dow Jones futures). Meanwhile, the USD/JPY pair climbed amid strengthening US yields and Dollar strength. FX Street (OCBC) noted market expectations of a 25 basis point Bank of Japan rate hike to 1.25%, with attention on Governor Ueda’s guidance.
FX Street (ING) highlighted that the US Dollar now has a stronger floor after the Fed’s move, impacting Japanese investors closely watching the interplay between US monetary policy and the Bank of Japan’s stance amid ongoing currency volatility.