EUR/USD stays pressured in Asia as shares slump on Powell's hawkish rehtoric By ross_burland EURUSD DollarIndex Equities Currencies
The Fed's hawkishness is reverberating throughout global markets, weighing on risk-sensitive currencies.
The US dollar is bid in Asia and risk aversion remains in play while investors fret over the Federal Reserve's plans to steadily tighten policy and political tensions between Russia and Ukraine. The euro, which trades as a proxy to these themes is continuing to bleed out from Wednesday's slide inAs expected, Fed officials left the funds rate unchanged, kept QE on track to end in March, and signalled a likely rate hike in March.
''We now expect four instead of three 25bp rate hikes along with the start of QT this year,'' analysts at TD Securities said with respect to the. ''We also now expect QT to formally be announced in May, instead of September, so we have a tightening announcement at each of the next three meetings. For 2022, we forecast a 25bp hike in March, the start of QT in May, and then 25bp hikes in June, September, and December.