{"id":129293,"date":"2026-03-19T12:24:04","date_gmt":"2026-03-19T10:24:04","guid":{"rendered":"https:\/\/ironfx-com.wp-dev.int.theitops.net\/?p=129293"},"modified":"2026-03-19T12:24:05","modified_gmt":"2026-03-19T10:24:05","slug":"hawkish-fed-creates-turmoil-in-the-markets","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/ar\/hawkish-fed-creates-turmoil-in-the-markets\/","title":{"rendered":"Hawkish Fed creates turmoil in the markets"},"content":{"rendered":"<p>Hawkish Fed creates turmoil in the markets as investors react to the central bank\u2019s decision to remain on hold while maintaining a firm stance on inflation. <\/p>\n\n\n\n<p>The US dollar strengthened against its peers, while risk sentiment weakened across equities, cryptocurrencies, and commodities, highlighting growing concerns that restrictive monetary policy may persist for longer than previously anticipated.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-usd-strengthens-as-the-fed-remains-hawkishly-on-hold\"><strong><strong><strong>The USD strengthens as the Fed remains hawkishly on hold<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p>The USD gained against its counterparts yesterday with the Fed remaining <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20260318a.htm\">on hold <\/a>as was expected. <\/p>\n\n\n\n<p>The bank seemed to be leaning on the hawkish side, as was also expected in <a href=\"https:\/\/www.ironfx.com\/en\/the-feds-decision-in-focus\/\" target=\"_blank\" rel=\"noreferrer noopener\">yesterday\u2019s report<\/a>. Characteristically, Fed Chairman Powell stated that inflationary pressures are not easing at the pace \u201choped\u201d. <\/p>\n\n\n\n<p>Furthermore, the intensification of the US war in Iran may also have provided some safe haven inflows for the greenback.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-boe-ecb-decisions-coming-up\"><strong><strong><strong>BoE, ECB decisions coming up<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p>In today\u2019s late European session, we highlight the release of the interest rate decisions of the ECB and BoE. Both are expected to remain on hold, and a hawkish approach is possible given worries for inflationary pressures. <\/p>\n\n\n\n<p>A possible hawkish approach by the banks could provide some support for the EUR and the GBP.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-oil-prices-on-the-rise\"><strong><strong><strong>Oil prices on the rise<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p>Oil prices rose yesterday as the war in Iran escalated further. Market worries were enhanced after Israeli air strikes on the Iranian gas field South Pars. <\/p>\n\n\n\n<p>The Iranians responded hitting Qatar\u2019s LNG facilities. The hits intensified worries and further escalation in the war in Iran could support oil prices further. <\/p>\n\n\n\n<p>Please note that US President Trump is seeking de-escalation which may ease market worries and weigh on oil prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-us-equities-bitcoin-and-gold-on-the-retreat\"><strong><strong><strong>US equities, bitcoin and gold, on the retreat<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p>US equities ended the day substantially lower yesterday. The Fed\u2019s hawkish approach tends to highlight the prospect of restrictive monetary environment for a longer period. <\/p>\n\n\n\n<p>Also, the risk-off market sentiment and the Fed\u2019s stance tended to weaken the cryptocurrency market. Bitcoin was leading the way down with a 5% drop yesterday alone. <\/p>\n\n\n\n<p>The bearish market sentiment continued to lead the crypto king even lower in today\u2019s Asian session. <\/p>\n\n\n\n<p>Furthermore, gold\u2019s price tumbled yesterday given the Fed\u2019s doubts to ease its monetary policy and the strengthening of the USD. It\u2019s characteristic that gold\u2019s price dropped 4% yesterday and continued to drop in today\u2019s Asian session.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-other-highlights-for-today\"><strong>Other highlights for today<\/strong><\/h2>\n\n\n\n<p>Today we get the US we get the weekly initial jobless claims figure and the Philly Fed Business index for March. On a monetary level, we get the interest rate decisions of SNB, Riksbank and CNB. In tomorrow\u2019s Asian session, we get from China PBoC\u2019s interest rate decision.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-charts-to-keep-an-eye-out\"><strong>Charts to keep an eye out<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-gbp-usd\"><strong><strong><strong>GBP\/USD<\/strong><\/strong><\/strong><\/h3>\n\n\n\n<p><strong>GBP\/USD<\/strong> dropped yesterday yet remained well within the boundaries set by the 1.3190 (S1) support line and the 1.3385 (R1) resistance level. <\/p>\n\n\n\n<p>We maintain a bearish outlook for cable, as the downward trendline guiding it remains intact and the RSI indicator remains at relatively low levels implying a bearish market sentiment for the pair. <\/p>\n\n\n\n<p>Yet there seems to be a weakness for the pair\u2019s price action to form lower troughs so we issue a warning for a possible stabilisation.<\/p>\n\n\n\n<p>Should the bears maintain control as expected, we may see the pair breaking the1.3190 (S1) support line and start aiming for the 1.3010 (S2) support level. On the flip side should the bulls take over, we may see GBP\/USD breaking the 1.3385 (R1) resistance line and start aiming for the 1.3590 (R2) resistance level.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-wti\"><strong><strong><strong>WTI<\/strong><\/strong><\/strong><\/h3>\n\n\n\n<p><strong>WTI<\/strong>\u2019s price was on the rise yesterday and during today\u2019s Asian session corrected lower, just below the 97.35 (R1) resistance level.<\/p>\n\n\n\n<p>We maintain a bullish outlook for the commodity\u2019s price as the upward trendline guiding it remains intact, yet at the same time we also note the weakness of WTI\u2019s price to form new higher peaks hence a stabilisation may occur between the R2 and the S1. <\/p>\n\n\n\n<p>Should the bulls renew their dominance we may see WTI\u2019s price breaching the 100.90 (R2) resistance line and start aiming for the 107.00 (R3) resistance barrier. <\/p>\n\n\n\n<p>Should the bears take over, we may see WTI\u2019s price breaking the 93.90 (S1) support line and continuing lower to reach if not breach also the 90.85 (S2) support level.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-gbp-usd-daily-chart\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>GBP\/USD Daily Chart<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1916\" height=\"888\" src=\"\/wp-content\/uploads\/2026\/03\/03192026-gbp-usd-daily-chart-analysis.png\" alt=\"GBPUSD Daily candlestick chart showing a downtrend from January 2026, with key resistance (R1-R3) and support (S1-S3) levels labeled.\" class=\"wp-image-129299\" title=\"xau-usd-daily-chart\"\/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Support: 1.3190 (S1), 1.3010 (S2), 1.2870 (S3)<\/li>\n\n\n\n<li>Resistance: 1.3385 (R1), 1.3590 (R2), 1.3790 (R3)\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-wti-daily-chart\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>WTI Daily Chart<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1916\" height=\"888\" src=\"\/wp-content\/uploads\/2026\/03\/03192026-daily-chart-analysis-wti.png\" alt=\"WTI Cash Daily chart shows a strong rally from January 2026, approaching resistance at 97.35.\" class=\"wp-image-129300\" title=\"eur-usd-daily-chart\"\/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Support: 93.90 (S1), 90.85 (S2), 87.10 (S3)<\/li>\n\n\n\n<li>Resistance: 97.35 (R1), 100.90 (R2), 107.00 (R3)\u00a0<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" width=\"829\" height=\"741\" src=\"\/wp-content\/uploads\/2026\/03\/03192026-economic-calendar-forex-news-thurday.png\" alt=\"Table &quot;Thursday's Releases&quot; showing economic indicators and policy rates for UK, Switzerland, US, and Eurozone, with impact and probability comments.\" class=\"wp-image-129296\" style=\"aspect-ratio:0.8822515795519816;width:598px;height:auto\"\/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"838\" height=\"218\" src=\"\/wp-content\/uploads\/2026\/03\/03192026-economic-calendar-forex-news-friday.png\" alt=\"Table of Friday's early morning economic releases, featuring China's March 1-year and 5-year Loan Prime Rates with high impact.\" class=\"wp-image-129297\"\/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"830\" height=\"204\" src=\"\/wp-content\/uploads\/2026\/03\/03192026-benchmark-report-table-analysis.png\" alt=\"Horizontal bar chart of daily currency rates benchmark, with USD\/CHF gaining 0.94% and AUD\/USD losing 1.08%.\" class=\"wp-image-129298\"\/><\/figure>\n\n\n\n<p>\u0625\u062e\u0644\u0627\u0621 \u0627\u0644\u0645\u0633\u0624\u0648\u0644\u064a\u0629:<br>\u0644\u0627 \u062a\u064f\u0639\u062f \u0647\u0630\u0647 \u0627\u0644\u0645\u0639\u0644\u0648\u0645\u0627\u062a \u0646\u0635\u064a\u062d\u0629 \u0627\u0633\u062a\u062b\u0645\u0627\u0631\u064a\u0629 \u0623\u0648 \u062a\u0648\u0635\u064a\u0629 \u0628\u0627\u0644\u0627\u0633\u062a\u062b\u0645\u0627\u0631\u060c \u0648\u0625\u0646\u0645\u0627 \u062a\u064f\u0639\u062f \u062a\u0648\u0627\u0635\u0644\u0627\u064b \u062a\u0633\u0648\u064a\u0642\u064a\u064b\u0627. \u0644\u0627 \u062a\u062a\u062d\u0645\u0644 IronFX \u0623\u064a \u0645\u0633\u0624\u0648\u0644\u064a\u0629 \u0639\u0646 \u0623\u064a \u0628\u064a\u0627\u0646\u0627\u062a \u0623\u0648 \u0645\u0639\u0644\u0648\u0645\u0627\u062a \u0645\u0642\u062f\u0645\u0629 \u0645\u0646 \u0623\u0637\u0631\u0627\u0641 \u062b\u0627\u0644\u062b\u0629 \u062a\u0645 \u0627\u0644\u0625\u0634\u0627\u0631\u0629 \u0625\u0644\u064a\u0647\u0627 \u0623\u0648 \u0627\u0644\u0627\u0631\u062a\u0628\u0627\u0637 \u0628\u0647\u0627 \u0641\u064a \u0647\u0630\u0627 \u0627\u0644\u062a\u0648\u0627\u0635\u0644.<\/p>","protected":false},"excerpt":{"rendered":"<p>USD weakened despite favorable data The selling momentum for the USD in the FX market was maintained yesterday, given the<\/p>","protected":false},"author":15,"featured_media":107933,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_daim_seo_power":"","_daim_enable_ail":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-129293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","blog-category-financial-news","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Hawkish Fed creates turmoil in the markets<\/title>\n<meta name=\"description\" content=\"Hawkish Fed creates turmoil in the markets as USD strengthens and risk sentiment weakens across global assets\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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