The markets are so far little changed after the FOMC meeting minutes. The playbook is for the Fed to tighten policy to restrictive (target 4.25%-4.5% target range at year end and 25 basis points more in early 2023), then wait.
Whether that is too much or will be too little is open for debate. The Fed playbook calls for rates to stay steady for an extended period of time in 2023.
Looking at the stock market , they are marginally higher
- Dow is leading the way with a 16 point gain or 0.21%.
- S&P index is up 2 points or 0.06% but remains below the 200 week moving average at 3600. The price is currently at 3593
- NASDAQ index is up 20 points or 0.19% at 10446.51
In the debt market,:
- 2 year yield 4.289%
- 10 year yield 3.902%. The US treasury auctioned off 10 year notes at 3.93%. So yields are down a little bit
- 30 year 3.886%. That is also near the lows for the day
The EURUSD is seeing a little bit of a bid. It trades just above the 0.9700 level. The falling 100 hour moving average is down to 0.97315. If the buyers are to take more control in the short-term, getting above - and staying above - the 100 hour moving average is required
The GBPUSD has moved above its 100 hour moving average and trades to a new session high at 1.1112. That is near a swing level over the last 5 trading days at the same level. Moving above would have traders looking toward the high from yesterday at 1.1179. The 200 hour moving averages at 1.1189.
