The US dollar is rising strongly. Largest Asset Management Firm Expected Stronger Rise By

© Reuters – The US dollar rose towards the end of the US session to the 111 level.

The rise comes after the Federal Reserve raised the interest rate strongly again, and Powell insisted that the Fed would not bother with a correction in any market or a sharp decline. What is required is to slow economic growth to reduce inflation, which the latest reports indicated that it did not subside despite the drop in the price of an important component, which is gasoline. .

After the Fed’s report, Powell stated that interest rates may range between either 4.50% or 4.60% hikes by the end of this year.

This indicates that inflation will remain strong towards the end of the year. The forex market is now seeing the economy heading into a recession, so they are turning to the US dollar according to ING analysts.

adult expectations

The world’s largest asset manager, BlackRock, predicts that the Fed will continue to raise rates for a period of time, and the data is the final say in the depth of the tightening program and rate hikes.

The question now, says Rick Rieder, head of the global quota investment team, is: Will slowing growth cause the Fed to stop raising interest rates and its monetary policy tightening program, and start adjusting demand with already tight monetary conditions? The question remains unanswered with the Fed not announcing a clear plan.

As one asset manager says, “The markets are actually preparing for what the Fed may do by continuing its rate hike program to reach the tightening zone.”

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And the entry of interest rates into the tightening zone means very high interest rates.


The stock market fell sharply after the news, with the Treasury bonds being managed, which pushed the yields to rise strongly, falling by 1.7%, and the two-year bond yield rose above 4%, the highest level since 2007, and the 10-year bond yield of 3.640%, the highest since 2011.

The S&P 500 is down 20% for the year, and as tightening fears persist the market and risk appetite will remain one of the Fed’s casualties.

Until the situation stabilizes, the markets will remain volatile towards risk, and everyone will prefer to go to fixed income assets.

Despite its initial rise after Powell’s words on inflation and its radicalization, and inflation usually benefits gold as a hedge against it, gold has not been able to stay strong in the face of the dollar index and higher yields.

With this dollar it remains the asset of everyone for the time being, although it does not yield a return to its holders, but there is a case of escape to it.

Expected levels for the dollar index and gold today

Dollar on today’s frame

Support: 109.022, 109.595, 109.949

Resistance: 111.095, 111.449, 112.022

Gold on today’s frame (spot contracts)

Support: 1638.00, 1650.99, 1659.02

Resistance: 1685.00, 1693.03, 1706.02