Morning wrap (21.09.2023)

• The hawkish stance at yesterday's FOMC meeting led to a sell-off in the US stock market. The Nasdaq lost 1.53% on a daily basis, and the S&P500 alone lost nearly 0.94%. The best performer on the day was the Dow Jones, which lost just 0.22%. 
• The Fed kept interest rates unchanged and presented a more hawkish dot-plot chart that may suggest one more hike this year and fewer cuts in 2024.
• Asia-Pacific markets in today's session are directly extending the sell-off seen in the US - the Nikkei lost 1.25%, the Kospi lost 1.57%, the Nifty 50 fell 0.70% and the Hang Seng lost 1.38%.
• European index futures point to a lower opening of the session on the Old Continent.
• Investors' attention today is focused on the decisions of five central banks, which could significantly affect today's FX market volatility.
• At 08:30 a.m. BST we will learn the SNB decision, and at 12 a.m. BST the Bank of England decision.
• The USDIDX dollar index maintained its gains after yesterday's FOMC decision, with the USD/JPY pair breaking out to levels of 148.45. Antipodean currencies recorded clear declines at the beginning of the session.
• On the other hand, during the Japanese session we saw a verbal intervention by Secretary Matsuno, who communicated that no options will be ruled out on ensuring currency stability.
• An Australian industry arbitrator says Chevron and unions are close to reaching an agreement on recent wage strikes, which have supported gas prices (especially in Europe). 
• New Zealand's Q2 GDP grows stronger than expected. On a quarterly basis, GDP grew by 0.9% against forecasts of 0.4%. Previously, the quarterly growth rate was -0.1%.
• Goldman Sachs raised its Brent crude oil forecast to $100

Heatmap of the FX market, which illustrates the volatility on individual currency pairs at the moment. Source: xStation 5