Investors are holding their breath before today’s FOMC decision. The Federal Reserve (Fed) is expected to raise the interest rates by 50bp for the first time in two decades, and start reducing its balance sheet by $95 billion per month to tame the rising inflation in the US.

While the 50-bp hike is fully priced in, there is a chance for the Fed to get more aggressive and hint at a 75bp hike in a future meeting, despite the economic indicators that start showing signs of slow down. Inverse ETFs on Treasuries are interesting for those willing to bet for higher US yields.
Data-wise, the latest jobs data will throw light on what happened in the US jobs market in April, and the expectations are strong.

It is, of course, not a surprise that we see the US dollar continue strengthening, as besides the tighter Fed expectations, the safe haven flows support the greenback in the actual high economic and high geopolitical risk environment.

Elsewhere, oil remains upbeat into the OPEC decision, the energy stocks continue benefiting from soaring prices despite the Russia disruption, while the S&P500 companies show better-than-expected average earnings, despite some high-profile disappointments including Netflix and Amazon.

Watch the full episode to find out more!