FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
FxPro information and reviews
OctaFX information and reviews

The dollar is under pressure again

25 January 2021

Asian indices and US index futures were firmly on the upside Monday morning. The Nasdaq100 rewrote all-time highs before trading opened in the US, while the S&P500 and Dow Jones futures remain some distance from their highs of last week.

The dollar index hovers near two-week lows and within 1% from the two-year bottom, waiting for further signals from the Fed or the Treasury.

Later this week, there will be a Fed meeting, and it is unlikely that the dollar will take decisive steps in one direction or the other as investors will wait for further signals from the central bank. Investors have previously been wary of the FOMC signalling a QE winding down. However, the chances are much higher that we will see hints of an expansion of bond purchases.

Confidence in the economic recovery has caused US Treasury bonds yields to rise, making it more expensive for the US Treasury to borrow. That said, the US has trillions more to place this year and possibly even a couple of trillions more in the coming months.

Rising yields in the primary market increase government costs and could subsequently reduce the government’s readiness to finance economic growth. This situation is unlikely to please the Fed, which, even though it is independent of the government, has no interest in an uncontrolled rise in government bond yields.

The Fed can adjust the asset purchase programmes to keep most of the yield curve under control. So far, the Fed prefers a more relaxed approach, targeting total purchases on the balance sheet and short-term rates. However, yield curve control has already been used in large countries in Japan and Australia. It was also used earlier in the 20th century in similar circumstances when US government debt was at worryingly high levels (as it is now), and rates were at rock bottom. The willingness to do this could come through in comments this week. However, neither the Australian dollar nor the Japanese yen have experienced any considerable fall since introducing such measures in their own countries.




The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?
The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?

Euro/US Dollar (EUR/USD), for which we will provide the price forecast for the year 2022, is the most actively traded currency pair on the foreign exchange market, also known as Forex or FX...

2 Dec 2021

The greenback remains calm
The greenback remains calm

EURUSD is rather calm on Thursday; the pair is waiting for the news. The major currency pair reached stability while waiting for the news. The current quote...

2 Dec 2021

EURUSD is "seasick"
EURUSD is "seasick"

EURUSD will have to consider an earlier reduction of the US QE programme. The major currency pair reached stability on Wednesday after "rolling in rough weather" the day...

1 Dec 2021

The demand in the greenback is increasing
The demand in the greenback is increasing

After making a short pause on Friday, EURUSD is falling again. The major currency pair is under pressure again after a short break. The current quote for the instrument...

29 Nov 2021

The Euro's oversold is a sign for more volatility to come
The Euro's oversold is a sign for more volatility to come

The Euro fell against the dollar to 1.1200, a new 16-month low, having lost more than 4% in the last four weeks. The downward trend in the single currency accelerated...

26 Nov 2021

EURUSD is knocked out again
EURUSD is knocked out again

After testing another “bottom”, the major currency pair is consolidating. EURUSD continued falling and tested another low yesterday; right now, it is consolidating....

25 Nov 2021

HotForex information and reviews
XM information and reviews
FXCM information and reviews
AvaTrade information and reviews
LegacyFX information and reviews
FP Markets information and reviews
FP Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.