Hot U.S. Inflation Flipped Fed Odds and Sterling Felt It

The Federal Reserve rate decision is now priced at a 90% probability of a 25 basis point hike after two hotter than expected U.S. inflation prints. Fiona Cincotta, StoneX Senior Market Analyst, walks through what the Federal Reserve, Bank of England and Bank of Japan decisions mean for currency markets. U.S. core CPI inflation landed at 0.3% month on month against 0.2% expected, and rate expectations moved sharply. The European Central Bank raised rates and lifted its forecasts while saying little about what comes next. The Bank of England is expected to hold, so the vote split and the Bank of Japan pace signal now carry the weight. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_fiona_cincotta&utm_content=share 0:00 ECB Forecasts Turn Hawkish 0:35 Hot U.S. Inflation Data Lands 0:57 Fed Rate Hike Odds Hit 90% 1:51 The Guidance Vacuum Problem 2:20 Bank of England Holds Fire 3:59 Bank of Japan Speed Question Like and subscribe for more financial market insights. #Forex #StoneX #FionaCincotta #FederalReserve --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social