US dollar moves higher. Stocks move lower. Yields move higher

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 exerted a hawkish pause by skipping a rate hike but raising the terminal rate to 5.6% from 5.1%. That implies 50 more basis points hikes between now and the end of the year.

The market which was thinking in terms of no change and the potential for no change in July, is now thinking they got that idea wrong. Looking at the markets:

• EURUSD. The EURUSD moved back below its 200 bar moving average on the 4 hour chart 1.0853 and move down to retest its 100 day moving average 1.0805. The low price reached 1.0800 and bounced back higher. The current price trades at 1.0814. Moving below 1.0805 is needed to increase the bullish bias. Traders will watch the 200 bar moving average of the 4 hour chart at 1.0853.
  
  Price before decision: 1.0853

• USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term: The USDJPY moved back above its 100 and 200-hour moving averages (between 139.52 and 139.62) and extended toward the high swing area between 140.22 and 140.44. The high price reached 140.167 and backed off. He currently is trading at 139.95.

Price before decision: 139.39

• GBPUSD: THe GBPUSD move to a low of 1.2626. The high price yesterday reached 1.26238. Moving below that level and then the 1.26000 level would be the next key targets, followed by the rising 100 hour moving average 1.2575.

Price before decision: 1.2683

• USDCAD: The USDCAD has moved back above its 100-hour moving average at 1.3336. Recall from yesterday - and on Monday - the price moved above that moving average level, but could not sustain momentum to the 200-hour moving average (green line in the chart below). The 200-hour moving average currently comes in at 1.3371. The current price trades at 1.3340 just above the 100-hour moving average. Can the price hold support against the 100-hour moving average?

• AUDUSD: The AUDUSD tumbled lower after the hawkish pause by the Fed. The move to the downside erased all the gains for the day, and retested its rising 100 hour moving average of 0.67535 (blue line in the chart below). The price has bounced back up to currently traded 0.6775.

The US stocks have moved lower:

• Dow industrial average is trading down -385.0 or -1.13% at 33825. Change before decision was -154 point
• S&P index is down -25.15 points or -0.57 percent at 4343.88. Change before decision was +6.4 basis points
• NASDAQ index is down -87 points or -0.65% at 13485.54. Change before decision was up 19.33 points

in the US debt market yields the yield curve flattened as short-term rates both higher while longer term rates move lower.

• 2-year yield 4.753% +5.8 basis points. Yield before decision 4.62%.
• 10-year yield 3.827% -1.2 basis points. Yield before decision 3.778%
• 30-year yield 3.894% -4.7 basis points. Yield before decision 3.88%

Is the Fed intent on breaking the economy?