USD/JPY finds stability near 132.50, as market eagerly awaits the Fed’s decision

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USD/JPY finds stability near 132.50, as market eagerly awaits the Fed’s decision – by Dippusen USDJPY Fed YieldCurve

FOMC meeting takes center stage with markets converging on a 25 bps rate hike consensus.finds some respite on the back of rising US Treasury bond yields. U.S. Treasury Secretary Janet Yellen informed bankers on Tuesday that she is ready to intervene to protect depositors in smaller U.S. banks amid contagion concerns., leading Wall Street to close Tuesday on a positive note. UST yields experienced a strong bounce as investors moved away from bonds and into riskier assets.

Tuesday's upbeat sentiment received additional support from a meeting between Chinese President Xi and Russian President Putin. Putin suggested that Chinese proposals could form the basis of a peace settlement, but noted that the West and Kyiv were not yet prepared.subsided due to increased stability in the banking sector. Markets are pricing in an 85% chance of a 25-basis-point rate hike from the Federal Reserve .

Despite the ongoing banking turmoil, the market is finding consensus for a 25 bps rate hike, following the argument thatIt is likely that the US Treasury will take measures to support deposit guarantees, despite opposition from some senators. However, such a support plan must first pass through the parliamentary process.meeting was conducted before the banking turmoil, the focus will shift to the accompanying statement and dot plots.

 

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USD/JPY shows resilience around 131.00 mark as market awaits Fed’s next moveUSD/JPY hovers around the 131.00 mark during Tuesday's Asian session, maintaining its bearish bias. Although US Treasury (UST) bond yields received a
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