Indonesia Plans Higher Asset Yields to Boost Rupiah and Restore Investor Confidence 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
Indian Government Bonds Seen Opening Steady Ahead of RBI Policy Decision 
BOJ Governor Ueda Warns Oil Price Shock Could Trigger Persistent Inflation 
BOJ June Rate Hike Likely as Inflation Risks Rise Amid Middle East Tensions 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
Goldman Sachs Sees Fed Holding Interest Rates Steady Until 2027 
New Zealand Unemployment and Inflation Debate Intensifies Ahead of 2026 Election 
Uruguay Central Bank Holds Interest Rate at 5.75% Amid Inflation and Oil Price Concerns 
- The markets seem to be eagerly waiting for the Fed's rate hike on Wednesday. But there is still debate going on whether Central bank will hold the rate hike for a while which has already exceeded nine years.
- In 2014 Fed has given key focus on employment, consistent increase in jobs and reduction in jobless rate have forced Fed to taper QE3 and paved way for higher interest rates. But decline in inflation is forcing the Fed to delay rate hike until now.
- The key reason for decline in inflationary pressure was mainly due to sell-off in global crude oil prices which broke to new lows last week.
- The FOMC is expected to hike rate at least by 25bps today with a monetary policy statement accompanied by a hawkish tone. The Fed's plan for the monetary policy ahead after a rate hike is shown by Dot plot. If the Dot projection is flatter than expected then there will less number of hikes next year and the rates will rise at slower pace.
If Fed is more hawkish than expected - EUR/USD is expected to break major resistance 1.10900 and will reach till 1.1178/1.1200 level.
If Fed is more dovish than expected - EUR/USD will break major support 1.0900 and will reach till 1.08300/1.0760 level.
