© Archyde.com Despite Powell’s strong statements… the dollar drops sharply for the second day
Arabictrader.com – The US dollar fell clearly for the second day in a row, despite the strong statements of US Federal Reserve Governor Jerome Powell regarding continuing to tighten monetary policy until achieving the bank’s inflation target, and the following are the main influences on the US dollar’s movements yesterday:
Jerome Powell’s comments fail to support the US dollar
Jerome Powell’s statements came very strong and stressed that the bank will continue to tighten monetary policy during the upcoming meetings of the bank until achieving the inflation goal, but these statements did not provide sufficient support for the dollar except in an instant, and the US dollar quickly declined strongly and profit-taking operations may be on the dollar The US is the cause of its strong losses during the past two days, especially following the US currency had risen to its highest level in 20 years, and then this drop may be profit-taking, and then the dollar may regain its strength once more in the coming days.
Weak US bond yields negatively affect the dollar’s movements
The US dollar fell clearly during trading yesterday, Friday, coinciding with the weakness of the US bond yield of all ages, as the US 10-year bond yield decreased by 0.62% to settle near the level of 3.272%. The US 20-year bond yield also fell near 3.6868%.
At the same time, the 30-year bond yield settled near 3.445%, and this weakness in the US bond yield had a strong negative impact on the American trading.
Calmness of high inflation fears pressures the dollar’s movements
The US dollar also fell clearly for the second day in a row, as concerns regarding high US inflation continued to subside, especially following prices collapsed to their lowest levels since last January, which in turn affected the dollar negatively, because oil prices were the strongest supporter of US inflation, and with prices calm This may lead to a continued decline in US inflation, and therefore, this may affect the Fed’s plans to accelerate the pace of interest rate hikes during the coming period.
How was the US dollar index affected by these developments?
In light of these developments, the US dollar index declined significantly in the markets, and settled below the level of 109 points, as it is currently trading near the level of 108.89 points, a decrease of 0.75%, and it is awaiting any new developments in the markets.
