Central Banks, It’s Time To Act
The US dollar has reinforced 2% versus the Japanese yen as Fed executed the long-awaited rate hike. Members also presented their economic projections and stated that they will cut the balance sheet later this year. While Bank of Japan was having the meeting, Tokyo’s Nikkei index increased 0.5%. Hong Kong lifted 0.4%. Sydney and Singapore both grew 0.3%. Wellington and Taipei improved as well while Seoul dropped 0.1% and Shanghai reduced 0.2%. Traders will pay much attention to Haruhiko Kuroda’s comments after the meeting.
Some BoE members voted for a rate increase. Sterling responded with gains, hitting 1.2795 dollars and then closing a little lower. Party divergence between Conservatives and Labours still burden the currency, though.
Considering all this news, it seems like Central Banks started thinking about policy tightening. Analysts say that traders should be ready for such drastic changes.