Sat, January 28, 2023

FOREX Tuesday – US Dollar Bounces Forward

Forex-profit-calculator.jpg

On Monday, the U.S. dollar climbed versus the euro and yen as investors focused on the Fed’s interest rate hiking path. This followed a policymaker’s remark that last week’s colder U.S. Inflation figures had too much attention. But even though the dollar rose versus the yen and euro, it retreated from its highs as investors betted on a slower pace of Fed interest rate increases. After last week’s 4% drop, the dollar index marked its biggest weekly decline since March 2020. In October, consumer prices rose less than anticipated, causing bets for slower price increases.

The greenback appeared due to hopeful investor readings of Fed Governor Christopher Waller’s comments. But it lost ground as the day progressed, with Fed Vice Chair Lael Brainard’s comments on Monday, restoring investor hopes for slower rate hikes.

In an interview with Bloomberg, Brainard said the Fed has more work to do. He also said he would slow tightening in the short term, calculating how high the cost of borrowing would be and how long it would take to keep inflation low. On Monday, the dollar suffered due to Brainard’s comments, which pumped equity sentiment.

The Outcomes of the U.S. Dollar Around the Globe

The dollar index (tracked against a group of six other major currencies) rose as much as 0.93% to 107.274 before retreating to 106.73 in the last trade activity. After hitting a three-month high of $1.0368, the euro lost 0.01% against the dollar to $1.0342. According to ECB board member Fabio Panetta, the central bank must continue to raise rates while avoiding tightening, as doing so would harm productive capacity yet deepen an economic downturn.

According to data released Monday, eurozone industrial production increased significantly more than predicted in September. August’s production was raised as well. According to economists, it’s partly due to manufacturers front-loading production ahead of this winter’s energy issues. British Chancellor Jeremy Gaunt should outline tax increases and spending cutbacks in his autumn statement on Thursday. While waiting, the sterling falls. After gaining 4% in the previous two days, the pound was down 0.55% at $1.1770.

After the collapse of FTX, cryptocurrencies remained in a state of disarray. On a month-to-date basis, the crypto exchange’s token has fallen 95%, down by 7.8% to $1.308. Bitcoin dropped to $15,784 earlier today before recovering mildly. At $16,280, it was last down by 0.18%.

Central bank’s formal guidance and a substantial boost in market sentiment in China help its ailing housing sector. With the decision to ease some of the country’s tight COVID-19 limitations, China’s onshore yuan climbed to nearly two-month highs versus the dollar.

Meanwhile, the dollar climbed as high as 140.79 against the yen elsewhere, up 0.79% versus 138.92 earlier, after earlier losses against the greenback, risk-sensitive Australian and New Zealand dollars regained ground.

YOU MAY ALSO LIKE

Oil might reach $150 per barrel as OPEC+ will control supply

The biggest oil and gas companies are prepared to report annual profits,

Sterling declined on Thursday. What about Euro and Dollar?

Sterling fell slightly on Friday but was still close to its highest

Nokia Beats Exceeds Earnings Predictions

Nokia Oyj’s earnings topped expectations. Even amid a worse macroeconomic backdrop, as

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of

BROKER NEWS

Broker News

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of its