US Dollar forecast: Powell's aggressive outlook supports the ris
The United States Dollar is the world's most widely used reserve currency and the most popular currency overall. The USD is sometimes referred to as "The Greenback" due to its green color, and traders wishing to purchase assets in or from the US frequently find it to be their preferred option. Traders frequently want to purchase US Treasuries when risk aversion is strong, which may increase demand for US Dollars.
On Friday, the dollar index managed to stay above 105.5 and was expected to close the week at a higher level as Federal Reserve representatives refuted rumors that US interest rates had already peaked. On Thursday, Fed Chair Jerome Powell stated that the bank is "not confident" that it has taken sufficient steps to reduce inflation. Due to the strength of the economy, Fed Governor Michelle Bowman has already hinted that further rate rises may be forthcoming. On the other hand, Minneapolis Fed President Neel Kashkari stated that it is premature to declare victory against inflation. Data-wise, US weekly unemployment claims decreased by 3K to 217K last week, following an upwardly revised 220K in the prior week and falling short of estimates of 218K. The dollar is expected to finish the week higher versus the majority of other major currencies, with the Australian dollar seeing the strongest purchasing activity in response to the Reserve Bank of Australia's dovish signals.
MARKET MOVEMENT
The DXY 4-Hour chart shows that the price is now trading above the 150.500 level, breaking the previous high to maintain an uptrend. It appears that the price is headed toward the high that is shown in the attached chart. I will remain calm until the price hits the 106.000 zone, at which point we may wait for a response that verifies the price's intention to drop. For the time being, I don't think there are enough reasons to make a short entry.
On Friday, the dollar index managed to stay above 105.5 and was expected to close the week at a higher level as Federal Reserve representatives refuted rumors that US interest rates had already peaked. On Thursday, Fed Chair Jerome Powell stated that the bank is "not confident" that it has taken sufficient steps to reduce inflation. Due to the strength of the economy, Fed Governor Michelle Bowman has already hinted that further rate rises may be forthcoming. On the other hand, Minneapolis Fed President Neel Kashkari stated that it is premature to declare victory against inflation. Data-wise, US weekly unemployment claims decreased by 3K to 217K last week, following an upwardly revised 220K in the prior week and falling short of estimates of 218K. The dollar is expected to finish the week higher versus the majority of other major currencies, with the Australian dollar seeing the strongest purchasing activity in response to the Reserve Bank of Australia's dovish signals.
MARKET MOVEMENT
The DXY 4-Hour chart shows that the price is now trading above the 150.500 level, breaking the previous high to maintain an uptrend. It appears that the price is headed toward the high that is shown in the attached chart. I will remain calm until the price hits the 106.000 zone, at which point we may wait for a response that verifies the price's intention to drop. For the time being, I don't think there are enough reasons to make a short entry.