The CHF is the strongest and the AUD is the weakest as the NA session begins

As the North American session begins, the CHF CHF The Swiss franc or Confoederatio Helvetica (CHF) is the official currency of Switzerland and Liechtenstein. The CHF is currently the seventh most-traded currency in the world and is treated as a significant reserve currency.Unlike other currencies in the world’s leading economies, the CHF was notable for its currency peg with the euro (EUR). Started in 2011, the Swiss National Bank (SNB) pegged the CHF to the EUR at a minimum exchange of 1.2.At the time, the peg was justified due to the strong C The Swiss franc or Confoederatio Helvetica (CHF) is the official currency of Switzerland and Liechtenstein. The CHF is currently the seventh most-traded currency in the world and is treated as a significant reserve currency.Unlike other currencies in the world’s leading economies, the CHF was notable for its currency peg with the euro (EUR). Started in 2011, the Swiss National Bank (SNB) pegged the CHF to the EUR at a minimum exchange of 1.2.At the time, the peg was justified due to the strong C Read this Term is the strongest and the AUD is the weakest. In the US, the Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term raised rates by the expected 75 basis points yesterday. Chair Powell gave some leeway of 50 -75 basis points at the next meeting but the dot plot sees a string of 75-50-25 and 25 over the next 4 meetings into the end of the year. That would take the Fed Funds target to 3.4% comfortably above the neutral rate of 2-2.5%.

The stock market cheered the move and the flexibility, yesterday but it is "fast break the other way" today, as the SNB surprisingly raised rates by 50 basis points (rates are still -0.25%), and the BOE hiked for the 5th time by 25 basis points taking the rate to 1.25%, and traders are now focused on the "what if". That is "what if" the great launch, does not work? What if inflation, because it is Russian/Covid/Central Bank/Fiscal policy induced does not stop? What if the economies start to see sharp employment reductions and the ensuing recession(s) are deeper, and longer?

Stocks have reversed the gains from yesterday (and more in some of the indices). The Nasdaq index which looked like it might have successfully bounced near the 200 week MA, is back down near that MA level.

Yields are sharply higher. German 10 year is up 18.5 basis points. The US 10 year are up, but coming back down in the first minutes of trading in the NY session. They are currently up about 5.7 basis points.

A look around the markets shows:

• Spot gold is down $8.70 or -0.47% at $1823.43
• Spot silver is down $0.20 or -0.94% at $21.41
• WTI crude oil futures are trading down $1.85 at $113.47
• The price bitcoin is trading at $21,059. That's down around -$700 on the day

In the premarket for US stocks, the major indices are trading lower across the board

• Dow industrial average is down -470 points after yesterdays 303.7 point rise
• S&P index is down -70 points after yesterdays 54.53 point rise
• NASDAQ index is down to -256 points after yesterdays 270.81 point rise

In the European equity markets, the major indices are lower

• German DAX, -354.42 points or -2.65%
• France's CAC -117 points -1.96%
• UK's FTSE 100 -181 points or -2.5%
• Spain's Ibex -98 points -1.2%
• Italy's FTSE MIB -600 points or -2.69%

In the US debt market, yields are higher but off the highest levels

In the European debt market, yields are also higher with the flow funds heading out of the German, France, UK bonds today and money into the riskier Italy as the ECB plans to create a new tool to address fragmentation of the respective rates.