While waiting for the Fed, these 4 factors are shaking the markets

The Federal Reserve will announce its rate decision this evening, with markets waiting for the end of its usual two-day meeting to get clearer indications on the path to cutting the cost of money.
Asian stocks – Japan closed for holiday – had a mixed performance, showing cautious sentiment given the possibility that the Fed will signal a slower path of rate cuts.
The yen fell to four-month lows on expectations of generally still accommodative policy in Japan.
All the investors' spotlight is on President Jerome Powell's press conference and the so-called "dot plot" which shows the forecasts for the movement of rates over the course of 3 years.
Markets are pricing in three reductions in the cost of financing in 2024, compared to six at the beginning of the year.
The US central bank will likely reiterate its focus on persistent inflation while keeping an eye on the slowly rising unemployment rate.
In this context of maximum attention towards central banks, the markets are however moved by 4 other themes and events not to be underestimated.
read also Fed meeting, forecasts.
Three rate cuts in 2024? 1.
Super dollar? The greenback's continued upward momentum has put pressure on riskier assets, strengthening the US Dollar Index (DXY) and keeping EUR/USD price action well below the 1.0900 level yesterday and in today's first exchanges.
The U.S.
currency rose more than 2% in 2024 in a nascent rally that nearly retraced 2023's decline.
Wall Street began the year betting that virtually every G10 currency would gain against the dollar in anticipation of an aggressive cut of interest rates by the Federal Reserve.
Forecasts on monetary policy, however, have been downgraded.
Furthermore, the fact that other central banks may cut alongside the Fed has provided new support to the world's reserve currency.
Russian oil under attack Ukraine is using drone technology over a 2,000-kilometer (1,200-mile) swath of largely Soviet-era oil facilities.
At least nine major refineries have been successfully attacked this year, currently knocking offline, by some estimates, 11% of the country's total capacity.
Separately, a tanker from the shadow fleet of ships assembled to transport Russian oil was involved in a collision near Denmark, underscoring the risks posed by the trade.
Banking Moves JPMorgan unexpectedly raised its dividend by 9.5% on the back of a record annual profit and as regulators signal they may reconsider proposals to tighten capital rules.
The increase to $1.15 a share, announced Tuesday, marked the second time in the past 12 months that the largest U.S.
bank increased its quarterly payments.
Over the past three years, the bank has sent about $60 billion to shareholders through dividends and share buybacks.
Yen hits 4-month low The yen languishes near a four-month low against the US dollar and a 16-year low against the euro on Wednesday, as traders bet Japan's monetary policy will remain accommodative even if the bank central will put an end to its negative interests.
As the Bank of Japan ushered in the country's first rate hike in 17 years on Tuesday, the central bank said it plans to maintain accommodative conditions for now, keeping pressure on the yen as U.S.-Japan rate differentials remain strong.
The yen slipped 1% against the dollar on Tuesday after the BoJ's decision as most investors had already priced in a change, with analysts suggesting that the "accommodative" rate hike cemented the view that the yen carry trade was far from over.
Low Japanese rates have made the yen the preferred funding currency for carry trades, in which traders typically borrow a low-yielding currency and then sell and invest the proceeds in assets denominated in a higher-yielding currency.
Meanwhile, several analysts underline that the movement of the dollar/yen exchange rate in the short term will be influenced by the Federal Reserve's decision.

Author: Hermes A.I.

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