U.S. Dollar Higher On Prospects Of Faster Fed Tightening
08 Aprile 2022 - 6:26AM
RTTF2
The U.S. dollar appreciated against its major counterparts in
the Asian session on Friday, following hawkish remarks from a
Federal Reserve policy maker supporting aggressive interest rate
hikes to counter inflation.
St Louis Fed President James Bullard said on Thursday that the
central bank remained "behind the curve" on interest rates and
preferred to raise the federal funds rate by another 3 percentage
points by the end of the year.
Chicago Fed President Charles Evans and his Atlanta counterpart
Raphael Bostic said that it is appropriate to raise rates to
neutral but in a measured manner.
The Fed minutes released on Wednesday suggested that it plans to
start the balance sheet reduction next month and favored a
half-point liftoff in interest rates at one or more meetings in the
future.
According to the CME Group's FedWatch Tool, investors are
pricing in the Fed to raise interest rate to a target range of
between 2.5 percent and 2.75 percent by the end of the year.
The greenback firmed to more than a 3-week high of 1.3041
against the pound and more than a 4-week high of 1.0855 against the
euro, off its prior lows of 1.3082 and 1.0882, respectively.
Immediate resistance for the greenback is likely seen around 1.28
against the pound and 1.06 against the euro.
The greenback touched a 10-day high of 0.7460 against the aussie
and more than a 2-week high of 0.6870 against the kiwi, from its
early lows of 0.7493 and 0.6893, respectively. The greenback may
test resistance around 0.72 against the aussie and 0.66 against the
kiwi, if it gains again.
The greenback appreciated to a 10-day high of 0.9353 against the
franc, from a low of 0.9331 hit at 5 pm ET. On the upside, 0.95 is
likely seen as its next resistance level.
The greenback edged up to 1.2596 against the loonie, after
dropping to 1.2576 at 1:45 am ET. The greenback is likely to locate
resistance around the 1.28 region.
The greenback rose back to 124.15 against the yen, on track to
pierce a 10-day high of 124.23 seen at 6:45 pm ET. If the greenback
rises further, it may likely seek resistance around the 129.00
level.
Looking ahead, Canada jobs data for March and U.S. wholesale
inventories for February will be out in the New York session.
Grafico Cross US Dollar vs CAD (FX:USDCAD)
Da Mar 2024 a Apr 2024
Grafico Cross US Dollar vs CAD (FX:USDCAD)
Da Apr 2023 a Apr 2024
