FED Rate Hike Expectations

FED Rate Hike Expectations

FED Rate Hike Expectations

FED Rate Hike Expectations

FED rate hike expectations make DXY stronger and we see declining EUR against US Dollar. ECB and FED both are hawkish and the side who tightens the market will get more appreciation. On a technical basis the first resistance is 1.000 and first support is 0.98505 Level.

The dollar index held steady around 109.8 on Monday, hovering close to its highest levels in 20 years as investors remained on the sidelines ahead of a big week for central bank decisions, headlined by the Federal Reserve which is expected to deliver another supersized rate hike to tame surging inflation. Higher-than-expected inflation numbers and solid economic data in the US last week cemented expectations that the Fed will tighten further, and markets are currently priced for a third straight 75 basis point increase, while some analysts are betting on a bigger full percentage point hike. The US economy also showed relative strength in the face of slowing global growth, making the dollar attractive for investors looking for safety. Meanwhile, investors remained cautious as other major central banks such as the Swiss National Bank and the Bank of England are also expected to raise interest rates this week, and a hawkish surprise could spur more currency volatility.

European equity markets were set to open on a weak note on Monday as investors remained on the sidelines ahead of a big week for central bank decisions, headlined by the US Federal Reserve which is expected to deliver another supersized rate hike to tame surging inflation. Global growth concerns and an ongoing energy crisis in Europe that threatens to push the region into recession also kept markets on edge. DAX futures were down about 0.2%, while Stoxx 600 futures traded little changed.

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14 September 2022 14:15

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