The U.S. Dollar Index, DXY, rose almost 0.7% on Friday to 101.25, a level that was last seen in March 2020 when investors worldwide piled into the greenback during the onset of the COVID-19 pandemic. The dollar is getting a lift from expectations that the Federal Reserve is about to start aggressively hiking rates to combat inflation, currently at its highest annual rate since 1981.
The U.S. Dollar is edging higher against a basket of major currencies Friday afternoon, hitting a more than two-year high. The main catalyst behind the greenback’s strength is supportive comments from Federal Reserve Chair Jerome Powell on Thursday.
In a speech at an International Monetary Fund (IMF) meeting, Powell implied his support for a half a percentage point tightening at next month’s policy meeting, as well as likely consecutive rate hikes this year.
The June U.S. Dollar Index is trading at 101.275, up 0.661. The Invesco DB US Dollar Index Bullish Fund ETF (UUP) is at $27.05, up to $0.16.
More 50-basis Point Fed Rate Hikes to Come: Powell on Thursday said a half-point interest rate increase “will be on the table” when U.S. central bankers meet on May 3-4.
Fed funds futures have started to price in a third 50-basis-point hike in July, after the same increase in May and June, and nearly 250 basis points of cumulative increases in 2022.
Global cues were weak as the likelihood of slowing economic growth on the back of aggressive monetary policy tightening, recent development in Ukraine, and lockdowns in Shanghai led global markets towards ending in red for the second week in a row.
Hawkish comments from the US Fed chairman signaling more aggressive policy tightening in its next policy meeting led to a jump in the 10-year US Treasury yield and the dollar index. This, followed by the European Central Bank (ECB) Vice President acknowledging the possibility of a rate increase in July – potentially the bank’s first in 12 years – kept investor sentiments subdued.
Dollar Index Long (Buy) Enter at: 101.384 T.P_1: 101.949 T.P_2: 106.562 T.P_3: 111.106 T.P_4: 115.452 T.P_5: 121.327 S.L: 96.784
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.