US Dollar Emerges Near 105.5 Mark as Global Economic Outlook Worsened

Azeez Mustapha


Unlock Daily Forex Signals

Select a Plan


1 - month



3 - month



6 - month






Separate Swing Trading Group



Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored

Service for copy trading. Our Algo automatically opens and closes trades.


The L2T Algo provides highly profitable signals with minimal risk.


24/7 cryptocurrency trading. While you sleep, we trade.


10 minute setup with substantial advantages. The manual is provided with the purchase.


79% Success rate. Our outcomes will excite you.


Up to 70 trades per month. There are more than 5 pairs available.


Monthly subscriptions begin at £58.

The dollar enjoyed some safe-haven demand on Friday as woes over the global economic outlook worsened. The Australian dollar, which is tightly bound to the global economic performance, crashed to a two-year low against the dollar Friday.

Over the months, persistent inflation and a frantic reaction by top central banks to stave off a recession by raising interest rates to plug the flow of cheap cash has sparked massive sell-offs across risk markets and bolstered asset candidates as safer bets.

The dollar recorded decent gains on Friday despite a drop in US Treasury yields, as the global economic downturn weighed heavily on the benchmark 10-year bonds, sending it to a one-month low.

Recent Dollar Gains a Product of Fear of a More Aggressive US Fed

The dollar’s strength came from concerns that the US Federal Reserve will continue to raise rates exponentially to combat inflation and the possibility of this effort hurting the economy.

Commenting on the recent dollar performance, Joseph Trevisani, a senior analyst at FXStreet, explained:

“You have weakening rates against the dollar competing against [the] fear of a global recession and enormous amounts of debt and all sorts of other problems.”

Meanwhile, economic data releases showed that US manufacturing activities dropped to worse-than-expected levels in June, with new orders contracting for the first time since 2020, signaling a cooling in the economy.

Also, general expectations for the US Fed rate hikes dropped by 68 basis points (bps), with money markets pricing-in a peak of 3.32% in March 2023, a decline from previous estimates of 4%. This readjustment of rate hikes expectations came after the June 14-15 Fed meeting. At press time, the US Fed’s lending rate is 1.58%.

Kenneth Broux, an FX strategist at Societe Generale, had this to say about the dollar’s performance:

“It’s a risk-off start to the second half of the year with equities and commodities down, so the dollar is stronger pretty much across the board.”


You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

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