The US dollar move higher continues unabated and looks set to return to highs last seen in 2002 as the greenback becomes the safety play of choice. Get your market update from nickcawley1 here:
The US dollar move higher continues unabated and looks set to return to highs last seen in 2002 as the greenback becomes the safety play of choice. A fresh risk-off wave has swept over a range of markets this week, sending equity markets lower andpairs ever higher. US interest rate expectations continue to push higher, sending US Treasury yields to multi-year high levels. The interest-rate sensitive UST 2-year now yields 3.
The US central bank has hiked rates at the last four Fed meetings this year and is set to continue this trend going into 2023. The Fed has raised rates by 225 basis points so far this year to a target rate of 2.25% - 2.50% and this rate is now seen peaking at 3.75% - 4.00% in mid-2023. In contrast, the European Central Bank raised its three key lending rates by 50 basis points in July, the first rate hike in over a decade.
With the ECB now looking to hike rates more aggressively, the Euro is starting to find some strength, albeit from a lowly level. After breaking back below parity,is now using 1.000 as short-term support and this may remain the case ahead of next week’s ECB monetary policy meeting. The daily chart still shows the pair in a downward trend with an unbroken series of lower highs and lower lows, while the spot price is under all three simple moving averages.
Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current
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Euro ( EUR) Latest – EUR/USD Bolstered by Bumper ECB Rate Hike ExpectationsThe US dollar move higher continues unabated and looks set to return to highs last seen in 2002 as the greenback becomes the safety play of choice. Get your market update from nickcawley1 here:
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