The current rise of the dollar is both affected by the interest rate hike by the Fed and the interest rate difference between the currencies of various countries and the dollar due to policy gaps. Intervention by the Bank of Japan (BOJ) could not reverse the dollar's upward trend.

The Bank of Japan's intervention in the foreign exchange market may make the market hesitate in the short term, but it will not change the yen's weakness in the long run.

After the global central banks raised interest rates, the biggest bearish news suppressing gold prices has almost gone in the short term. Gold has maintained a volatile adjustment, but there is still a risk of further decline in the short term.

At a policy meeting that ended earlier today, the Bank of Japan (BOJ) maintained its yield curve control (YCC) policy and dovish forward-looking guidance unchanged. Subsequently, the Ministry of Finance instructed the BOJ to intervene to support the JPY. The USDJPY fell five-digit to 140.8 and then fluctuated sharply over the next few hours. Japan has the second largest foreign exchange (FX) reserve in the world. Therefore, it has sufficient ammunition to continue to defend the JPY, but in the current economic environment, the market will increase pressure on the YCC.

The Bank of England (BOE) decided to raise interest rates by 50 basis points to 2.25% by a 5: 4 voting result, which is in line with market expectations. The BOE has raised interest rates seven times in a row since December last year. Nonetheless, the BOE's decision has still had a limited boost on the GBP, reflecting the current macro-structure that will lead to higher inflation and lower real interest rates.

Major central bank events intensified risk aversion sentiments, reversing gold's rebound from a two-year low. The recent weakness in gold prices was linked to the Fed's pain in containing inflation soaring, with multiple central banks following the Fed's hawkish line giving bears hope. However, is that really the case?