Fed Chair Powell Testifies - US Dollar Soars and NFP Around the Corner
Federal Reserve Chair Jerome Powell surprised on the hawkish side and triggered a large dollar rally. Powell hinted both at a higher peak rate ( “that the ultimate level of interest rates is likely to be higher than previously anticipated”) and opened the door for a return to 50bp hikes.
The question now is, can the Fed continue to push the dollar higher? The short answer is yes, essentially because even assuming markets won’t price in a higher peak rate than the current 5.75%, a 50bp move in March isn’t fully priced in (40bp embedded in the OIS curve) and there is ample room to scale back rate cut expectations for end 2023 and early 2024.
This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.
Business activity in the eurozone is growing, but very slowly
S&P500’s buy-the-dip sentiment helped Bitcoin
EUR/USD Pressured by External Factors
Resilient dollar despite weak jobs data
EBC Markets Briefing | Gold extends gains as slump deepened in Asia
Dollar seeks direction as Trump’s TV appearance could hurt risk appetite
Technical Outlook on USD/JPY, GBP/USD, BTC/USD
