Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
Chile Central Bank Holds Interest Rate at 4.5% as Inflation and Global Risks Persist 
BOJ Expected to Hold Rates Steady While Signaling More Hikes Ahead 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
BOJ Seen Holding Rates at 1% While Keeping Inflation Risk Warning 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Best Gold Stocks to Buy Now: AABB, GOLD, GDX 
Yesterday’s price action post FOMC announcement strongly suggest that the market is more focused and more concerned about the future actions of the European Central Bank (ECB) that the U.S. Federal Reserve.
Yesterday’s policy action, statements, and projections - all were very hawkish; Federal funds rate was increased by 25 basis points along with other rate benchmarks, Fed projected increased growth, higher inflation, lower unemployment, and higher Federal funds rate. Despite that, the U.S. dollar declined against all its major counterparts, especially the euro only after a brief rise. The euro immediately declined after the FOMC announcement from 1.179 against the USD to 1.172 area, but recovered grounds since then and is currently trading 1.183 area.
With Fed, the market is pretty clear that the Fed will hike twice more this year and thrice next year with a constant reduction in its balance sheet. But, with ECB, the market is not certain about the timing of the QE end, tapering projections, and interest rate projections. We believe that market is increasingly focused on the ECB meeting, which is today, as the current bond-buying program of €30 billion per month will expire in September this year.
