EUR

• Negative sentiment. Fed’s ‘higher for longer’ forecasts have continued to wash through. Long-end bond yields rose again. Equities dipped. USD consolidated.• BoE surprise. Following the weaker UK CPI the BoE surprised by keeping rates on hold. GBP weakened with markets starting to price in a rates ‘peak’.• AUD softer. AUD slipped back over the past 24hrs. AUD/JPY has fallen by ~1%. The BoJ is today. Could it spring a ‘hawkish’ surprise? Risk markets have generally remained on the defensive with long-end bond yields continuing to push higher as the US Fed’s ‘higher for longer’ mantra continues to sink in....

• Fed volatility. Fed delivered a ‘hawkish hold’. No policy change, but the projected 2024 easing cycle was pared back. US yields & USD rebounded.• Higher for longer. Markets already look to be factoring in a ‘higher for longer’ view. Interest rate pricing remains above the Fed’s updated dots.• AUD round trip. A bit of volatility, but on net the AUD is little changed. AUD has picked up against GBP ahead of tonight’s BoE meeting. Markets endured some volatility overnight with moves in the lead up to the US Fed meeting reversing after the fact. Heading into the announcement, US...