Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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    US Dollar Forecast & Analysis: Positive investor sentiment on USD

    USD ($) has shown strong resilience and survival for consecutive two months now, especially as the Russia Ukraine crisis escalates. The dollar index has similarly risen to a new ATH nearing 100.

    The US dollar is beginning the new week strong again and performing strongly over any base currency matched against it. We expect the dollar to continue in its bullish momentum this week or at most remain neutral. This is based on several supportive reasons.

     

    Firstly, the Fed policies are currently tightening the dollar value. The Fed is poised to start raising the interest rates and eventually reduce the size of its balance sheet and further set to reconsider raising rates by 50bp.

    Similarly, there are currently high expectations for the Fed's terminal rate to be priced above 2.00%, making the US dollar a safe haven for investors for the rest of the year if achieved.

    Of course, the longer it takes to achieve inflation, the better the greenback’s chances of continuing on its bullish track.

    Also, as long as the Russian Ukraine war lingers, the dollar would be a safe haven for investors.

     

    Above all, the US is preparing for the first-rate hike in 2Q. Further accumulation of inflationary data and strong wage growth will point to more aggressive Fed action giving the dollar a more privileged position over other pairs.


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    Last Updated: 15/03/2022

    This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


     

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