Markets React with Diverging Momentum After Central Bank Decisions

The NASDAQ 100 continues to attract buyers on dips, indicating it's in a range-bound market. The Federal Reserve's interest rate decision has brought stability to the market, with bulls still in control.

However, the euro has crumbled due to the Fed's rate hike and suggestions of more increases to come. This has caught traders off guard, as they initially thought the Fed might be a 'one-and-done' central bank.

The British pound against Japanese yen has rallied, despite an interest rate hike in Japan and the Bank of England holding steady. The markets are interpreting the Japanese press conference as a sign that they may not be overly aggressive going forward.

Meanwhile, the US dollar has jumped against the Canadian dollar due to hawkish comments from Kevin Warsh and ongoing tariff issues between the two countries. The interest rate differential remains a key factor in this market.

The USD/JPY pair also rose as the Federal Reserve raised rates and sounded more hawkish than the Bank of Japan, despite their own rate hike. This has sparked a return to the carry trade.