Fed rate decision: If inflation takes off after a rise
- Take a look at our dedicated rate hike page for other scenarios
Should incoming inflation data and inflation expectations continue to rise, the market will be forced to adjust its inflation and rate trajectory outlook moving closer to the Fed's expectations.
The Federal Reserve will likely adopt a more hawkish tone and begin to bring hike expectations forward further lifting yields and the USD.
- DXY UP: buy DXYINDEX targeting 110
- Sell USDJPY risk reversal:
- Sell 6 month 105 PUT and Buy 6 month 115 Call
USDJPY five-year chart
Editor's note: Please look at our dedicated rate-hike page for other scenarios that could result from the December meeting of the Federal Open Market Committee.
— Edited by Robert Ryan
Non-independent investment research disclaimer applies. Read more