Forex Today – Asian Session: Central Bank Frenzy Leaves Bitter Taste For Traders

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What to watch for on Friday, September 23:

Several central banks announced their monetary policy decisions after the US Federal Reserve meeting.

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The first was the Bank of Japan, which decided to keep its monetary policy on hold. However, shortly after the meeting, the BOJ intervened in the foreign exchange market. The USD/JPY pair plunged like a rock from a post-meeting intraday high of 145.89 to 140.34. Currently, it is trading around 142.40.

The Swiss National Bank its raised its benchmark rate by 75 basis points. However, the USD/CHF advanced and ended the day at the 0.9780 zone. Governor Thomas Jordan stated that they are willing to intervene to direct the monetary conditions of the Swiss franc.

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Then it was the turn of the Bank from England, which pulled the trigger by 50 basis points, somewhat disappointing investors. Governor Andrew Bailey said they would continue to respond “strongly, as needed” to inflation, despite the risk of a deeper economic downturn.

As a color note, it should be added that the Central Bank of Turkey, in fact, cut rates from 13% to 12%. Separately, President Erdogan arranged a meeting with Russia to discuss a payment agreement and possible sanctions. Meanwhile, Moscow has threatened the Western world with nuclear war amid the latest aid to Ukraine.

recession seems inevitable , as stubbornly high inflation and escalating war force policymakers to act. Stocks fell, while US government bond yields soared to new all-time highs.

The EUR/USD pair is trading around 0.9830, meeting intraday sellers around 0.9900. The AUD/USD pair made a modest intraday gain and is hovering around 0.6640/50, while the USD/CAD trades at 1.3480.

Spot gold posted a modest intraday gain to settle at $1,672 a troy ounce. Crude oil prices ended the day virtually unchanged, with WTI trading at $83.50 a barrel.

On Friday, S&PGlobal will release preliminary estimates of September PMIs for major economies.

Source: Fx Street

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