US Greenback Rallies Additional on President Putin’s Warning, Fed Determination in View

US Greenback Rallies Additional on President Putin’s Warning, Fed Determination in View

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US Dollar Value and Chart Evaluation

  • Putin ‘I’m not bluffing on nuclear weapons’.
  • US greenback again above 110 and aiming larger.

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The US greenback hit ranges final seen twenty years in the past in early European commerce because the buck rallied after Russian President Vladimir Putin introduced a partial army mobilization, ramping up fears of an additional escalation of army motion in Ukraine. Worryingly, President Putin warned that he was not ‘bluffing’ about using nuclear weapons in response to what he sees as Western aggression. Putin’s feedback whereas ramping up fears may additionally point out that the Russian President is apprehensive about how the warfare in Ukraine goes with some seeing his mobilization of as much as 300,000 reservists as an indication that Russia’s military in Ukraine has been severely depleted.

Breaking News: Mobilization Declaration by President Putin Spooks Markets, Risk Off

T

he newest escalation within the Russia/Ukraine battle has taken the limelight off tonight’s FOMC financial coverage resolution, however not for lengthy. The Fed is totally anticipated to hike charges by 75 foundation factors this night, with an outdoor likelihood of a super-sized 100bp hike, whereas chair Powell’s subsequent commentary and the quarterly Abstract of Financial Projections (SEP) will probably be parsed carefully for any clues concerning the future path of US financial coverage.

You’ll be able to comply with the Federal Reserve’s resolution, and market implications, reside on the hyperlink under.

Central Bank Watch: Fed Speeches, Interest Rate Expectations Update, September Fed Meeting Review

Russia’s aggression in Ukraine noticed consumers flock to the safe-haven US greenback at this time, boosting the worth of the buck additional. The US greenback has been pushed larger over the previous couple of months by rising US treasury yields and elevated expectations that the Fed will go laborious in its battle towards inflation, even on the expense of triggering a short-term recession. Curiosity-rate delicate UST 2-year yields are at present at a 15-year excessive just below 4%, up from round 28 foundation factors a yr in the past.

For all market shifting information releases and financial occasions see the real-time DailyFX Calendar.

Wanting on the newest, month-to-month DXY chart, there may be little or no in the way in which of technical resistance to cease the US greenback from pushing even larger. The one level of notice on the month-to-month chart is a cluster of outdated highs made between October 2000 and January 2002 that high out at 121.29. That will appear a stretch from a present degree of simply over 111.00 however there’s nothing in the way in which. The month-to-month chart is flashing a closely overbought sign and this may occasionally should be washed out earlier than the buck strikes larger.

US Greenback (DXY) Day by day Value Chart – September 21, 2022

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What’s your view on the US Greenback – bullish or bearish?? You’ll be able to tell us by way of the shape on the finish of this piece or you may contact the writer by way of Twitter @nickcawley1.





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