Over the previous days, the dollar rose sharply, stocks plunged, and precious metals cratered as the Fed surprised the markets with its hawkish message.
“I put us starting in late 2022,” St. Louis Fed President James Bullard said Friday during a TV interview on CNBC, referring to interest rate increases by the U.S. central bank.
Additionally, Fed chief Jerome Powell indicated that the FOMC members had begun the conversation on stopping the bank’s massive bond-buying program (QE).
Monday brought a relief rally to most of the assets. Gold and silver were more than 1% higher, US indices rose more than 0.5%, and EU bourses moved higher as well.
The greenback declined, pushing the EURUSD pair toward 1.19, while the USDJPY pair continued to drop, undermined by the falling US yields.
The 10-year yield dropped below 1.4% for the first time since February.