Latest News

U.S. Dollar Higher On Hawkish Fed Remarks

The U.S. dollar appreciated against its most major counterparts in the European session on Wednesday, on hopes of aggressive rate hikes from the Federal Reserve to curb price pressures.

St. Louis Fed President James Bullard told Bloomberg TV on Tuesday that the central bank must act aggressively to keep inflation under control.

Cleveland Federal Reserve Bank President Loretta Mester called for bigger rate hikes in the first half, taking the interest rate to about 2.5 percent by the end of the year.

San Francisco Federal Reserve Bank President Mary Daly said that surging inflation is the “main risk” to the U.S. economy and a policy tightening is required despite the uncertainties around Ukraine conflict.

In a speech on Monday, Fed Chair Jerome Powell signaled the possibility of a half-point interest rate hike at the central bank’s next meeting.

Caution prevailed as the European Union is set to discuss a possible ban on Russian crude imports over its invasion of Ukraine.

The greenback rose to 1.0989 against the euro and 1.2591 versus the loonie, off its early low of 1.1044 and near a 2-month low of 1.2563, respectively. The next possible resistance for the greenback is seen around 1.06 against the euro and 1.28 versus the loonie.

The greenback edged up to 0.9357 against the franc and 1.3217 against the pound, following its prior low of 0.9322 and near a 3-week low of 1.3298, respectively. The greenback is seen finding resistance around 0.96 against the franc and 1.30 against the pound.

The greenback recovered to 0.6942 against the kiwi, from a fresh 4-month low of 0.6975 seen in the previous session. Next key resistance for the greenback is likely seen around the 0.66 level.

In contrast, the greenback was down against the aussie, at a 4-1/2-month low of 0.7482. The greenback may challenge support around the 0.76 mark.

The greenback held steady against the yen, after having retreated from more than a 6-year high of 121.41 set in the previous session. The pair was valued at 120.76 at Tuesday’s close.

Looking ahead, Canada wholesale sales and U.S. new home sales for February will be published in the New York session.

U.K. Chancellor of the Exchequer Rishi Sunak will present his Spring Budget 2022 at 8:30 am ET.

Eurozone flash consumer sentiment index for March is due out at 11:00 am ET.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News