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Dollar ends the week “thoroughly breaking out”

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The U.S. Dollar is on track for its best week in close to five months against major peers on Friday, on bets the Fed will hike rates sooner than forecast following this week’s inflation data.


The Dollar index – measuring the greenback against major rivals – reached a new 16-month high of 95.266, in line for a 1.05% gain this week.


In addition, the Euro declined to a 16-month low at $1.1436, whilst the Pound fell to its weakest level in 2021 at $1.3354, Reuters reports.


“We close out the week with the USD thoroughly breaking out,” said Chris Weston, head of research at brokerage Pepperstone. “I am seeing signs of an impending mean reversion play in the USD, but in this flow, dips are a buying opportunity.”


On Wednesday, data revealed a rise in U.S. consumer prices in October at the fastest annual pace since 1990, driving rumours the Federal Reserve will increase rates sooner than predicted. Markets are pricing in an initial rate hike by July with another by November.


“We still think market pricing has room to firm further, especially in 2023, which can further support USD,” according to Commonwealth Bank of Australia strategist Kimberley Mundy.


In addition, the Dollar hit 114.30 Yen on Friday, the strongest reading since 1 November, and reached a three-week high of 0.92295 Swiss Francs.


Governing board member of the Swiss National Bank, Andrea Maechler said on Thursday that the Swiss France was in demand as a safe haven investment amid mounting pandemic-fuelled uncertainties.


Furthermore, the Australian Dollar dipped to $0.7277 for the first time in over a month. The New Zealand Dollar also dropped as low as $0.69965, a level not seen since 14 October.

 

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The British Pound edged lower against both the US Dollar and Euro on Thursday, as investors awaited a speech by Bank of England Governor Andrew Bailey that could provide clues about the central bank’s next interest rate decision.
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The US Dollar edged higher on Wednesday, supported by rising oil prices, as investors awaited the Federal Reserve’s meeting minutes and comments from policymakers for clues about the outlook for interest rates.
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The Euro fell sharply on Monday to a 17-month low as mounting fiscal concerns in France, coupled with a severe sell-off in the bond market, raised fears of contagion across the region.
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Greenback surges to 17-month high as bond selloff rattles Euro

The US Dollar was on track for a third consecutive weekly gain on Friday, supported by a global bond selloff fuelled by inflation concerns over higher oil prices and mounting worries about France’s fiscal position. Meanwhile, the Euro remained near a 17-month low.
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Dollar hits fresh three-month high as yields support greenback

The US Dollar climbed to a more than three-month high on Thursday, underpinned by a sustained rise in US Treasury yields. The increase in yields has been partly fuelled by concerns that the US-Israeli conflict with Iran could keep global price pressures elevated.
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Mauritius,
J. Balcikonio str. 9,
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Lithuania,

media contact

About

deVere Group – Foreign Exchange’s Public Relations Department deals with all areas of the media and external communications including international, national, regional, local, trade, consumer, print, broadcast, social and online. The Department aims to provide a helpful service to journalists, broadcasters and editors, amongst others, and reply to all media enquiries, including urgent enquiries out of hours, within agreed deadlines.

Contact

Our press office does not have access to client details and will not be able to assist with individual client enquiries. Please contact deVere Group – Foreign Exchange’s Head of Public Relations on [email protected] or call +44 2071220925.