US Dollar Rallies Amid Hawkish FOMC Meeting Outcome

Updated:

Checkmark

Invest at least $250 in D2T to gain lifetime access to our VIP Signals

Checkmark

Get early access to Dash 2 Trade’s Presale. Buy the D2T token now

Checkmark

Existing community of 70,000+ traders

Checkmark

Unlocks access to the leading crypto trading analysis, signals and trading tools

Checkmark

As featured in CryptoNews.com, FXEmpire.com, FXStreet.com and more

Checkmark

World class development team backed by Quant developers and VC investors


The US Fed adopted a more hawkish stance during its recently-concluded FOMC meeting, as markets begin pricing in a possible four or five rate hikes in 2022. The US dollar received a massive boost from the event allowing it to gain significantly against other top currencies.

That said, reactions in the stock markets were surprisingly not pessimistic. The British pound recorded the second-best performance amongst other top currencies, as inflation outlook could push the Bank of England for a rate hike this week.

Meanwhile, the Australian dollar recorded the worst performance last week as the Reserve Bank of Australia has yet to show any intentions of tightening its monetary policy. The New Zealand dollar also saw a poor performance due to its risk exposure. Both Aussie and kiwi got weighed down by the risk flight in the Asia markets. Euro and Swiss Franc traded on a mixed sentiment along with the Canadian dollar, although the latter eventually received support from booking oil prices.

US Fed to Implement Five Rate Hikes in 2022

A rate hike in March is pretty much confirmed as the Fed said that “it will soon be appropriate to raise the target range for the federal funds rate.” Also, Fed Chair Jerome Powell did not rule out the possibility of a 50 base point rate hike, asserting that every meeting is “live.”

According to the latest Fed fund futures pricing, a 25 basis point rate hike is already priced in for the March FOMC meeting. Also, there is a 74% chance of another interest rate increase in May. The third 25 basis point hike could come in June or July, while the fourth would come between September and November. If there is a fifth hike, it should come in December or January.

The more aggressive hawkish outcome could see five rate increases in March, May, June, September, and December. Meanwhile, the less aggressive outcome could see four rate hikes in March, May, July, and November.

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • 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.