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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 emerges as strongest currency in the forex market

The US dollar has undoubtedly emerged as the strongest currency in the forex market for four consecutive weeks, triumphant in all pegged currency pairs. The dollar index has remained above 100 throughout this week and is currently at 100.5 during the Asian session today.

 

The US seems to be favored by many positive factors that have strengthened the currency over the weeks, especially over increasing concerns for imminent interest rate hikes.

The US Dollar attained its highest point on Thursday following Powell's speech at the international monetary fund's meetings. Here Powell disclosed that the US Central Bank would move aggressively to curb inflation. He further revealed that a half-point interest rate increase would be considered immediately next month during the next Fed meeting. Powell believes that the Fed must act immediately in hiking the interest rate now that inflation is currently running higher than expected.

 

This news seems to have so much favored the US dollar. Thus we saw the dollar index rise to its maximum point at 101 yesterday. Similarly, virtually all the USD crosses in the market have remained bullish.

USDJPY has risen to 129.400, its maximum exchange rate for four years, before a bit of pullback to 128.590 during the Asian session.

USDCHF has risen to a very high point at 0.95540 and is still pushing higher.

The US dollar has performed higher against the Euro, placing EUR/USD down to its lowest point in five years, exchanging at 1.08400.

 

Above all, more proactive action and tighter monetary policies are to come from the Fed at the next meeting to enable them to bring the current consumer price index (CPI) at 8.5% down to the targeted 2%.

The general sentiment for the US dollar remains strongly bullish.

Last Updated: 22/04/2022

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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