DXY

The US dollar is narrowly mixed against most of the G10 currencies. The notable exception is the Japanese yen, which is around 1.25% lower today.

Strong buy guidance on gold & top physical gold ETFs as fiscal dominance and stealth yield curve control fuel debasement. Click for more on the shiny metal.

The initial reaction to the Federal Reserve rate hike was to take US rates and the dollar higher, even though the hike was well anticipated.

The Federal Reserve raised the policy rate 25bp and signalled they may raise rates a second time before a long hold throughout 2027.

The Fed raises rates by a quarter point to 3.75%-4%. Dot plot signals at least one more rate hike this year. Stocks tumble as Treasury yields and the dollar surge.

Markets have almost fully priced a 25 bp interest rate hike by the U.S. Fed, while a second 25 bp hike later this year carries a 50% implied probability.

Any shift away from the dollar will be slow, incremental, and unlikely to materially impact U.S. investors. Read what the New Delhi Declaration focuses on.

The rise in oil prices and yields is helping underpin the greenback ahead of tomorrow’s conclusion of the FOMC meeting.