Three things to know before opening the US markets

Fed, the Fed will start shrinking its balance sheet in October
The Fed's yesterday's announcement that it will start shrinking its balance sheet in October, and the real opportunity for third-quarter interest rate rises helped raise the dollar. At the meeting after this decision, Janet Yelton mentioned that the fall in inflation was a "mystery," and the monetary policy committee's expectations are that it would soon resume the upward movement. We remain bullish on the dollar, using any correction for additions to the new trend.

BoJ kept its interest rate unchanged - a decline in JPY
BoJ decided to maintain the current levels of both the basic interest rate and the quantitative earmarking program. It was a surprise that the bank members are already willing to change the current monetary policy as it is not effective and will not lead to an increase in inflation. The difference between the monetary policy of the BoJ, the Fed and the ECB leads to a rise in USD/JPY and EUR/JPY, with traders taking advantage of this and the upward movement is likely to continue.

Mixed moods in the markets
The decision of the Fed yesterday led to a damp reaction on the stock market, with the SP500 closing 0.1% down. During the Asian session today, MSCI Asia Pacific declined by 0.7%, while TOPIX against the weakening yen rose 0.1%. In Europe, the Stoxx 600 grew by 0.2% and the SP500 futures were trading slightly down. Against the backdrop of rising dollar and the stagnation of indexes at record levels, gold is declining.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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