US Dollar Restricted in Sideways Bias as Trader Look Ahead to Powell’s Hearing

Azeez Mustapha

Updated:

Unlock Daily Forex Signals

Select a Plan

£39

1 - month
Subscription

Select

£89

3 - month
Subscription

Select

£129

6 - month
Subscription

Select

£399

Lifetime
Subscription

Select

£50

Separate Swing Trading Group

Select

Or

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
Checkmark

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

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

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

Checkmark

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

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

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

Checkmark

Monthly subscriptions begin at £58.


The US dollar index (DXY) maintained a sideways bias in the early trading session on Tuesday as traders remained on the sidelines ahead of incumbent Fed Chair Jerome Powell’s nomination hearing later today, for clues on possible price breakouts.

In his released opening remarks published yesterday, Powell would pledge to curtail excessive inflation from “becoming entrenched” but would not talk about the Fed’s monetary policy plans.

That said, Powell will take questions from senators as he plans to contest for a second four-year term under the Biden administration.

US Dollar Steady Despite Hawkish Fed Stance

The DXY, which tracks the dollar’s performance against six counterparts, traded around 95.80 (press time data) in the early London session on Tuesday.

 

The greenback hit a 16-month peak of 96.93 on November 24 amid a hawkish stance by US policymakers but has since fallen into a sideways pattern between 96.70 and 95.60, despite the growing possibility of a four-quarter rate hike this year.

Meanwhile, strategists at TD Securities argued that it appears that the Fed could be in a “sooner rather than later” mood for both interest rate hikes and tapering its bond exposure on its balance sheet, a process they dubbed quantitative tightening (QT). The strategists wrote that:

“An affirmation of March tightening and early QT should support USD firmness overall, though within well-established ranges.”

TD strategists expect the first rate hike in June, although said it could come as early as March. That said, money markets have already priced in an increase by May, with two more by November.

In other news, US December consumer inflation data will drop tomorrow, with the CPI data expected to drop at a massive 7% YoY, further increasing the possibility of an early rate hike.

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

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 *