A more hawkish Fed - what to expect from the minutes?
![Luke Suddards](https://eu-images.contentstack.com/v3/assets/bltaec35894448c7261/blt350098d7287e2777/60af66532e20e92be08983d9/Image_from_iOS_(1).jpg)
USDJPY:
Yen is getting destroyed as a culmination of factors work against the Asian currency. The US 10-year yield which it shares a very close correlation with has been increasing aggressively with a circa 12bps move yesterday and this has followed through today with a smaller but still circa 4bps move higher. This hurts the yen. Lastly, risk-on removes the demand for a safe haven currency like the yen and leads to capital flowing to higher beta assets.![image.png](https://eu-images.contentstack.com/v3/assets/bltaec35894448c7261/blt63d379d9dc7e411c/61d44c170d8059103bcf1d49/image.png)
Gold:
Gold is clearly on the backfoot with the increasing interest rate theme. Real yields have also moved higher which leads to the opportunity cost of gold rising and hence outflows. Price is now right on the key $1800 support level, which could be breached should the Fed minutes be received hawkishly by the market. The RSI was rejected at the 62 mark and is now around the 50 area. Gold has basically been in a range between $1750 and $1830. With all the moving averages bunched up like this, they aren't of much informational value.![image.png](https://eu-images.contentstack.com/v3/assets/bltaec35894448c7261/blt3a29782858ab78dc/61d44c4b39cc4b37aef70972/image.png)
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