US Dollar Regains Overt Bullish Momentum Following Hawkish US Fed Stance
Login

US Dollar Regains Overt Bullish Momentum Following Hawkish US Fed Stance

Estimated Reading Time: 2 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


The US dollar gained against a basket of other top currencies on Thursday, following hawkish comments and plans by US Fed Chair Jerome Powell in the recently-concluded FOMC meeting.

The greenback tapped a two-month high of 1.1193 per euro and held at the 115.06 top against the yen, this morning. The USD also hit its highest point in over a year against the kiwi, cleared a seven-week top against the Aussie, and recorded its best move against the pound since early January.

The dollar also climbed against the broader emerging market currency list as interest rate futures markets moved hastily to price in as many as five Fed rate hikes in 2022.

US Fed to Begin Rate Hike in March

The Fed chair told the press after the meeting that members of the board share a unanimous opinion to begin increasing interest rates in March to curb rising inflation.

That said, Powell emphasized that no concrete decisions had been taken on if the apex bank would consider a 50-basis point hike, indicating that the possibility remains. Instead, he noted that the economy is in better shape than in the most recent hiking cycle and inflation much higher. Powell added: “There’s quite a bit of room to raise interest rates without threatening the labor market.”

Meanwhile, Bank of Singapore strategist Moh Siong Sim noted that he expects four rate hikes in 2022, one for each quarter, arguing that Powell did not rule out more than four.

Notably, the USD’s overnight spike of 0.7% against the yen was the most significant in over two months, and bond and equity markets are reacting to the possibility of higher interest rates.

 

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

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News