The dollar jumped and Treasury yields spiked after a hawkish Fed meeting stoked rate-hike bets, with DXY breaching 105 and the 10-year yield pushing toward 4.50%.
The hawkish Fed meeting propelled DXY above 105 for the first time in two weeks as markets priced in higher U.S. rates. The dollar index gained broadly on expectations of further tightening.
The Fed signaled that further rate hikes may be necessary, lifting the dollar by boosting the attractiveness of U.S. assets and widening rate differentials against other currencies.
DXY faces resistance around 106, with a break above that opening the path to 107. Support now sits at the previous breakout level near 104.50.
Short-term yields spiked as the Fed's hawkish tone led traders to price in additional rate hikes, pushing the 10-year yield toward 4.50%.
The hawkish Fed increased the likelihood of further tightening, raising the trajectory for short-term rates and pulling up longer-term yields like the 10-year.
Gold tumbled as rising U.S. yields and a buoyant dollar undermined the non-yielding metal, pushing spot gold toward $1,900.
Gold declined as the opportunity cost of holding zero-yield bullion rose with U.S. yields, while a stronger dollar made it more expensive for foreign buyers.
The stronger dollar weighed on the euro, pushing EUR/USD below 1.07 as the hawkish Fed widened the U.S.-European rate gap.
The dollar surged on hawkish Fed signals, making the greenback more attractive relative to the euro, especially given the ECB's more cautious posture.
Equity futures dropped as the prospect of higher rates intensified, pressuring risk assets and especially growth-sensitive tech names.
Stocks sold off as higher rate expectations reduced the present value of future earnings, with S&P 500 futures pointing lower.
The Federal Reserve's hawkish June meeting fueled a broad dollar rally, sending DXY above 105 for the first time in two weeks as traders rapidly repriced the path of U.S. interest rates. The dollar's surge was accompanied by a spike in Treasury yields, with the 10-year yield climbing toward 4.50%. The hawkish tone lifted rate-hike bets, pressuring equities and commodities, and leaving the euro and gold at session lows.
The Fed delivered a hawkish message, indicating that further policy tightening may be needed to curb persistent inflation, leading markets to price in additional rate hikes.
The dollar rallied strongly, with the DXY index climbing above 105 to a two-week high, as investors adjusted for higher U.S. interest rates.