Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
China Set to Hold Benchmark Lending Rates Steady for 15th Month 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
BOJ Holds Rates at 1% as Inflation Outlook Eases, October Rate Hike Still Possible 
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Yesterday’s price action post FOMC announcement strongly suggest that the market is more focused and more concerned about the future actions of the European Central Bank (ECB) that the U.S. Federal Reserve.
Yesterday’s policy action, statements, and projections - all were very hawkish; Federal funds rate was increased by 25 basis points along with other rate benchmarks, Fed projected increased growth, higher inflation, lower unemployment, and higher Federal funds rate. Despite that, the U.S. dollar declined against all its major counterparts, especially the euro only after a brief rise. The euro immediately declined after the FOMC announcement from 1.179 against the USD to 1.172 area, but recovered grounds since then and is currently trading 1.183 area.
With Fed, the market is pretty clear that the Fed will hike twice more this year and thrice next year with a constant reduction in its balance sheet. But, with ECB, the market is not certain about the timing of the QE end, tapering projections, and interest rate projections. We believe that market is increasingly focused on the ECB meeting, which is today, as the current bond-buying program of €30 billion per month will expire in September this year.
