FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
91%
HFM information and reviews
HFM
89%

Dollar retreats after Fed-inspired upsurge, eyes on central bank speakers


7 April 2022

The dollar rally continued late Wednesday and the US Dollar Index (DXY), which tracks the greenback's performance against a basket of six major currencies, reached its highest level in nearly two years at 99.77. Ahead of the US weekly Initial Jobless Claims data and speeches of FOMC policymakers, the DXY is staging a downward correction. The market mood stays upbeat early Thursday with US stock futures indexes posting modest gains. The European economic docket will feature the European Central Bank's (ECB) Meeting Accounts and February Retail Sales data.

The minutes of the Federal Reserve's March policy meeting revealed on Wednesday that many participants noted that they would have preferred a 50 basis point increase in the target range for the federal funds rate at that meeting.

The publication also confirmed that the Fed is planning to start reducing the balance sheet after the May meeting. With the initial market reaction to the hawkish FOMC statement, the 10-year US Treasury bond yield climbed to its strongest level since April 2019 at 2.66% before retreating below 2.6% early Thursday.

Despite the surging US T-bond yields, USD/JPY struggled to gain traction. The pair continues to trade in a relatively tight channel below 124.00 in the European morning. Commenting on the currency valuations, "the merits of a weak yen on Japan’s economy outweigh the demerits," Bank of Japan (BOJ) policy board member Asahi Noguchi said on Thursday.

Gold stayed relatively resilient amid risk aversion on Wednesday and ended up closing the day virtually unchanged above $1,920. XAU/USD is moving sideways below $1,930. Bitcoin suffered heavy losses on the hawkish Fed tone and lost more than 5% on Wednesday. BTC/USD is fluctuating below $44,000 early Thursday. Ethereum is already down nearly 10% this week but stays above $3,000.

#source

Share: Tweet this or Share on Facebook


Related

USD & Yields higher, Yen, Stocks & Gold sink
USD & Yields higher, Yen, Stocks & Gold sink

A blockbuster NFP on Friday (571k new jobs vs 185k) & strong Services PMI (55.2 vs 50.5) has lifted the Dollar and Yields, sinking Stocks and Gold (the 3 mth Gold rally is over)...

7 Feb 2023

Gold traders appear hesitant
Gold traders appear hesitant

Gold finally broke out of the consolidation after being range bound for nearly 11 days. The correction to the downside was expected as gold traded in the overbought territory...

3 Feb 2023

Do safe haven currencies still exist?
Do safe haven currencies still exist?

At the end of last year, Swiss National Bank (SNB) President Thomas Jordan told news media that both the Swiss franc and the US dollar could be considered safe havens...

3 Feb 2023

USD Index appears bid and approaches 102.00 ahead of Payrolls
USD Index appears bid and approaches 102.00 ahead of Payrolls

The index looks to extend the post-ECB rebound. January Nonfarm Payrolls will take centre stage later. Other key data includes the ISM Non-Manufacturing...

3 Feb 2023

USD Index appears depressed post-Fed, breaches 101.00
USD Index appears depressed post-Fed, breaches 101.00

The index drops to 10-month lows near 100.80. The dollar remains on the defensive post-FOMC event. Initial Claims, Factory Orders next of note in the docket...

2 Feb 2023

Can The GER40 Keep Its Strength?
Can The GER40 Keep Its Strength?

As attention turns to the approaching Fed and ECB announcements, the GER40 index maintains stability near its best level since September last year...

2 Feb 2023


Editors' Picks

FXCM information and reviews
FXCM
87%
ActivTrades information and reviews
ActivTrades
86%
RoboForex information and reviews
RoboForex
85%
MultiBank Group information and reviews
MultiBank Group
84%
Libertex information and reviews
Libertex
83%
Vantage information and reviews
Vantage
83%

© 2006-2023 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.