FX Signals on US Dollar slips before expected Fed rate hike
NEW YORK (Reuters) – The dollar fell against a basket of currencies on Wednesday ahead of the outcome of a Federal Reserve meeting, as investors evaluated how much expected U.S. central bank hawkishness is already priced into the greenback forex telegram channel
TOKYO (Reuters) – The U.S. dollar was headed for its worst week since early February against major peers on Friday, weighed down by a retreat in Treasury yields and fatigue after the currency’s breathless 10%, 14-week surge.
The dollar index, which measures it against six major rivals, tried to claw back some ground into the weekend, edging up 0.05% to 102.96, but remained 1.42% lower for the week, on track to snap a six-week winning run. Last Friday, it had soared to the highest since January 2003 at 105.01.
Even with global stocks sliding this week amid risks to growth from aggressive monetary tightening – led by the Federal Reserve – and China’s strict lockdowns to quash a COVID-19 outbreak, the dollar’s appeal as a haven was eclipsed overnight by a decline in U.S. yields as investors rushed for the safety of Treasury bonds.
The benchmark 10-year Treasury yield sank to a more than three-week low of 2.772% on Thursday, from a 3 1/2-year high of over 3.2% earlier this month.
“The dollar was ripe for a pullback,” Edward Moya, senior analyst with OANDA, wrote in a note to clients. “Across the board weakness might continue a while longer.”
Other safe-haven currencies continued to rally overnight, as a key index of global equities headed for a seventh weekly decline, its longest ever.
Asian stocks recovered some ground on Friday though, buoyed by China’s cut to a key lending benchmark to cushion its economic slowdown. [MKTS/GLOB]
The yen ticked up slightly on Friday, headed for a second-straight weekly advance, with the dollar dropping 0.84% to 128.13 yen over the period.
The Swiss franc headed for its best week since March 2020, with the dollar falling 3.1% since last Friday to 0.97070 franc.
Concerns are growing that the Fed and other central banks have fallen behind the curve in combating super-hot inflation, and will need to be ever more aggressive in tightening policy, inflicting pain on the economy as a consequence.
The war in Ukraine shows no sign of abating either, darkening the outlook for commodity price-driven inflation.
Australia’s currency slipped on Friday though, down 0.35% to $0.7023, after it surged 1.33% the previous session.
“Aussie benefited disproportionately yesterday from the China news, so I think there’s just a bit of an unwind of that, maybe some positioning going on,” said Joseph Capurso, a strategist at Commonwealth Bank of Australia (OTC:CMWAY).
New Zealand’s kiwi though held all of the previous day’s 1.41% jump, ticking up a bit more to $0.6385. The Reserve Bank of New Zealand sets policy next Wednesday, with expectations for another half-point increase to the key rate.
The euro edged 0.1% lower on Friday to $1.05725, but was still on course for a 1.56% weekly gain.
Sterling slipped 0.11% to $1.2457, but was up 1.49% for the week, its best showing since late 2020.
Westpac analysts warned not to count the dollar out, even if its rally was “losing some of its vitality”.
“It’s still far too early to call a long-term peak, amid unsettled global market conditions and a resolute Fed,” the Australian bank’s analysts wrote in a research note, recommending buying on dips to the 102s and targeting 105 multi-week.
The Fed is expected to hike rates by 50 basis points, which would be the largest increase in two decades, and announce plans to reduce its $9 trillion balance sheet as it tackles inflation rising at the fastest pace in 40 years.
Comments by Fed Chairman Jerome Powell on Crypto at the conclusion of the meeting will be scrutinized for signals on how the U.S. central bank will balance the need to stem rising price pressures against weakening growth if the economy stutters.
“Chair Powell’s post-decision press conference will be key. If he shows any hints of dovishness, markets will take yields and the dollar lower,” Win Thin, global head of currency strategy at Brown Brothers Harriman, said in a report. crypto signals
“That said, we see no reason for Powell to hedge his bets right now and so we expect full speed ahead from the Fed,” he added.
The dollar index was last at 103.24, down 0.16% on the day. It reached 103.93 on Thursday, the highest since Dec. 2002.
Fed funds futures traders are pricing for the Fed’s benchmark rate to increase to 2.96% by year-end, from 0.33% now.
The Fed is expected to take a more hawkish approach to monetary policy than its peers, with Europe struggling from weaker growth and energy disruptions due to sanctions imposed on Russia after its invasion of Ukraine.
The EU proposed its toughest sanctions yet against Russia on Wednesday, including a phased oil embargo.
The euro rose to $1.0551, up 0.30%, after dropping to $1.0470 on Thursday, the lowest since January 2017.
The Aussie gained 0.63% to $0.7141.
The most traded pairs of currencies in the world are called the Majors.EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD, Gold, Oil and many many more… Forex Trading comes with it high risk. We help by referring only the very best forex brokers available in the marketplace. Your in safe hands with our partners.
With our free forex learning guides you will be able to educate yourselves with the most up to date forex basics required in order to enter the Capital Markets. FxPremiere.com Learning centre is now available for all to read. With blog posts written monthly on the most common searched terms.
Fx Signals Dollar index touches 100 for first time
[/vc_column_text]
———————————————-
GBPUSD Exchange Rate Will the Fed’s Latest Decision
FX Signals on US Dollar slips before expected Fed rate hike
Legal: This website is affiliated with Xm which is operated by Trading Point of Financial Instruments Limited, registration number HE251334, with registered address at 12 Richard & Verengaria Street, Araouzos Castle Court, 3rd Floor, 3042 Limassol, Cyprus. Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.33% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please consider our Risk Disclosure. Our Partnership with Xm Trading Point of Financial Instruments Limited provides investment and ancillary services to residents of the European Economic Area (EEA) and the United Kingdom. Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.33% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please consider our Risk Disclosure.
Any news,messages, opinions, charts, prices, analyses, or other info on this website shouldn’t be taken as a piece of investment advice but provided as general information for entertainment and educational purposes. The site should not be wholly relied on for extensive research before making personal trading decisions. Any content on this website is subject to change without notice. FxPremiere won’t accept liability for any damage, loss, or profit loss as a result of the use or relying directly or indirectly on such information. We don’t recommend only the use of technical analysis for making trading decisions. Neither do we recommend hurried trading decisions. Always understand that past performance doesn’t guarantee future results. DISCLAIMER: FxPremiere.com and its team members are not registered as financial advisors and hold no formal qualifications to give financial advice. Everything that is provided on this server telegram signals as intermediates to signal sources only, on FxPremiere.com website or FxPremiere.com and its team members is purely for educational purposes only. FxPremiere.com and its team members are not accountable or liable for any losses or damages. You are responsible for all the risks you take. Any content provided here should not be construed as financial advice.
