© Archyde.com. The dollar is rising in today’s trading, so will it achieve gains for the second week in a row?
Arabictrader.com – The US dollar rose during the last trading sessions of the week, heading towards recording a second consecutive weekly gain, supported by the recovery in demand for US bonds; Accompanied by waning fears of a recession in the US economy.
Looking at today’s trading, we notice that the American currency, which measures the performance of the American currency once morest other major currencies, recorded an increase of regarding 0.15%, to settle near the level of 103.38 points.
In terms of weekly trading, the US dollar rebounded clearly during today’s trading, but it may not record noticeable weekly gains by closing today’s session; Where the gains of the dollar over the past five days and so far amounted to regarding 0.52%, which is a very slight percentage.
It is worth noting that the dollar faced several developments that clearly affected its trading this week, on top of which was Powell’s speech, which was not tough enough regarding the bank’s next moves to raise interest, similar to the speech of the previous monetary policy meeting, as well as some hard-line statements by some members of the US Federal Reserve. ; In conjunction with very strong US labor market data.
The most important reasons for the recovery of the US dollar in today’s trading are summarized in the following points:
1. Rebound returns
The rise in US Treasury bond yields contributed to strengthening the bullish momentum of the dollar’s trading today, as the US 10-year bond yield rose by approximately 0.56%, in addition to the US 20-year bond yield rising by approximately 0.43%, indicating a recovery in investor demand for the dollar. dealings.
2. Fears of a recession in the US economy have receded
A member of the US Federal Reserve, Thomas Barkin, argued yesterday, Thursday, that the US Federal Reserve is able to deal with the economic conditions in the United States and stop the economic recession despite the interest rate hike, and that the latest data excludes the possibility of an economic recession scenario.
And those statements boosted the dollar’s trading; Due to the receding fears of the US economy entering a state of recession, as many believed that the US Federal Bank’s approach to tightening its monetary policy would cause severe damage to the largest economy in the world, especially recession; Which eventually boosted the recovery of demand for the dollar.
3. Recent statements by some members of the US Federal Reserve
In addition to the above, the US Federal Reserve official, Waller, stressed that inflation is still very high in the United States, and there are no signs of inflation subsiding. So it is likely that interest rates will remain high for longer than expected.
This would feed the market’s expectations regarding the US Federal Reserve’s continuation of its tightening approach and the necessitated rate hike. Which led to a rise in the dollar in transactions.
