South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
BOJ Expected to Hold Rates Steady While Signaling More Hikes Ahead 
BOJ Seen Holding Rates at 1% While Keeping Inflation Risk Warning 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
In the mid of challenging global environment, the Fed opted for a rate hike to bring the global economy back on track. Fed policy outlooks are expected to be more divergence than the rest of the world and fairly priced into forward rates. This backdrop is expected to support the extension of the USD rally in the months to come, mainly against the EUR since the ECB prefers easing.
While the direction of the USD is broadly shared, the length of the rally and the conviction about the direction are highly contested. In this debate, we are more bearish than most on the EUR and more optimistic on the US dollar.
The market is on doubt that the US economy can endure the combination of higher rates and stronger US dollar and anticipates two-three hikes every other meetings.
"The main disagreement is about the length of the initial hiking path rather than the timing of the first hike. We believe that the Fed intends to deliver four 25bp hikes every other meeting when the cycle begins, reaching 1% in 12 months; furthermore, we think it will most likely succeed", says Barclays.
