EWFOREX.NET
USD/PEN 3.9087; EUR/USD $0.9840; BITCOIN $18456
GOLD $1673; USOIL $83.03
US CENTRAL BANK RAISES FED FUNDS RATE
The US Federal Reserve raised its fed funds rate to 3.25—a 75 basis point hike. This was the fifth consecutive hike by the Fed as it chases rising bond yields. The US 10-year yield hit an intraday high of 3.64% and is now trading at 3.534%. The benchmark yield hasn’t been this high since 2011. This along with the inverted yield curve with the low end surging.
Fed Powell outlook was grim also and signaled slower growth as inflation takes hold. US stocks crashed with the US SPX500 losing 80.5 points-a 2.08% loss. Oil finished off the day losing $1.24 closing at 83.02 down 1.47% on the day. Cryptos all slid too with Bitcoin dropping 1.18% and ETH 4.76%!
PERU’S MARKETS
Here in Peru, we fared better. The BVL Peru General Index (PEN) held strong as most markets tanked. It rose 0.39% today gaining 76.44 points. However, the Sol did not as it fell against the dollar. USD/PEN shot up to S/3. 9087.
Technically, the Sol looks strong against the dollar, despite the US stock market crashing. The EW structure down from USD/PEN 4.16 2020 high has the pair falling soon. However, if the US stock markets keeps sliding red, I do not think the pattern on USD/PEN will hold. The US stock market is the fear meter. And so far when markets panic, the dollar is king and runs up against the Sol and most other emerging market currencies.
