Now: Greenback is back again

Fed rate hike is coming

Risk aversion sentiment end up winding around the market as the rise of the US Yield become one of the catalysts amid expectation on hawkish Fed. US stocks plunge down and buck also other safe-haven currencies outperform anyone else.

Jerome Powell, Federal Reserve Chairman, as everyone predicted signal that a 50-basis points rate hike at next upcoming meeting is very likely. Mary Daly who is one of the most dovish members of FOMC even state that there a possibility of 75-basis points rate hike.

Euro doesn’t want to be left behind

During the IMF panel, the President of the ECB Christine Lagarde didn’t tell any new update on the ECB monetary policy however the Vice President of ECB Luis de Guindos which is well-know for his dovish stand sending signal that there a possibility of rate hikes this July.

His words support the stand of the majority of the ECB members in which more toward hawkish stand in which rise the expectation of the ECB tightening policy even furthers.