Central Bank Divergence Moving Currencies More Than Single Rate Hikes

Three central bank decisions landed inside four days, and the repricing that matters happened before any of them. Two hotter than expected U.S. inflation prints moved the Federal Reserve rate decision to a 90% probability of a 25 basis point hike, while the European Central Bank raised rates and lifted its forecasts without committing to a path. With the Bank of England widely expected to hold, the vote split and the Bank of Japan's hiking pace now carry more information than the decisions themselves. Fiona Cincotta, StoneX Senior Market Analyst, walks through what the Federal Reserve, Bank of England and Bank of Japan decisions mean for currency markets. View her full report in the related video.