Market wrap: dollar makes further gains, big levels across the board - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The US dollar made further gains overnight in response to yesterday’s FOMC meeting. Equities and commodities did ok despite the Fed tightening.  

Interest rates: US 10yr treasury yields initially extended yesterday’s post-FOMC rise by another 7bp to 2.64% - a two-year high – before steadying around 2.50%. The 2yr yield similarly pushed higher to 1.30% before consolidating. Fed funds futures are now pricing a 100% chance of another hike by June.

Currencies:  The US dollar index is up 1.3% on the day, the US dollar having outperformed all major currencies. EUR extended its FOMC fall from 1.0500 to 1.0367 – a 14 year low. USD/JPY extended its rise to 118.66 – a 10-month high. AUD fell further, from 0.7425 to 0.7338. NZD fell from 0.7100 to 0.7011. AUD/NZD rose from 1.0450 to 1.0473."

US dollar index hits 14-year high in the Fed aftermath