US Dollar Value and Chart Evaluation
- Putin ‘I’m not bluffing on nuclear weapons’.
- US greenback again above 110 and aiming larger.
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The US greenback hit ranges final seen twenty years in the past in early European commerce because the dollar rallied after Russian President Vladimir Putin introduced a partial army mobilization, ramping up fears of an additional escalation of army motion in Ukraine. Worryingly, President Putin warned that he was not ‘bluffing’ about using nuclear weapons in response to what he sees as Western aggression. Putin’s feedback whereas ramping up fears can also point out that the Russian President is nervous about how the battle in Ukraine goes with some seeing his mobilization of as much as 300,000 reservists as an indication that Russia’s military in Ukraine has been severely depleted.
he newest escalation within the Russia/Ukraine battle has taken the limelight off tonight’s FOMC financial coverage determination, however not for lengthy. The Fed is absolutely anticipated to hike charges by 75 foundation factors this night, with an outdoor probability of a super-sized 100bp hike, whereas chair Powell’s subsequent commentary and the quarterly Abstract of Financial Projections (SEP) will probably be parsed carefully for any clues concerning the future path of US financial coverage.
You’ll be able to observe the Federal Reserve’s determination, and market implications, stay on the hyperlink beneath.
Russia’s aggression in Ukraine noticed patrons flock to the safe-haven US greenback as we speak, boosting the worth of the dollar additional. The US greenback has been pushed larger over the previous couple of months by rising US treasury yields and elevated expectations that the Fed will go arduous in its combat in opposition to inflation, even on the expense of triggering a short-term recession. Curiosity-rate delicate UST 2-year yields are at present at a 15-year excessive slightly below 4%, up from round 28 foundation factors a yr in the past.
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Wanting on the newest, month-to-month DXY chart, there’s little or no in the way in which of technical resistance to cease the US greenback from pushing even larger. The one level of word on the month-to-month chart is a cluster of previous highs made between October 2000 and January 2002 that high out at 121.29. That will appear a stretch from a present degree of simply over 111.00 however there’s nothing in the way in which. The month-to-month chart is flashing a closely overbought sign and this may occasionally should be washed out earlier than the dollar strikes larger.
US Greenback (DXY) Every day Value Chart – September 21, 2022
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What’s your view on the US Greenback – bullish or bearish?? You’ll be able to tell us through the shape on the finish of this piece or you may contact the writer through Twitter @nickcawley1.