Hawkish Fed comment strengthens the dollar

FX:GBPUSD   British Pound / U.S. Dollar

Recent comments from St. Louis Fed President James Bullard suggest he supported the idea of another full percentage point rate hike to 7%, which weakened the stock market. Among the major indices, the Dow Jones Industrial Average decreased 7 points (-0.02%) to 33,546, the S&P 500 declined 11 points (-0.30%) to 3,946, and the Nasdaq 100 dropped 22 points (-0.19%) to 11,676.

Meanwhile, prospects for more massive rate hikes strengthened the greenback, EUR/USD fell to 1.036, as the Eurozone CPI was slightly lower than Mitrade's estimates with a 1.06% on-year increase. GBP/USD lost over 50 pips to 1.1862, and the UK Chancellor just announced large-scale tax hikes and spending cuts.

AUD/USD decreased to 0.6681. USD/CAD had minimal losses and closed at 1.3326, USD/JPY rebounded further to 140.18.

A stronger dollar sends spot gold lower, currently at $1,760.22 an ounce. Rising covid cases in China once again caused oil prices to drop, and WTI oil futures closed at $82.08 a barrel.