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US dollar continues to strengthen as risk trades struggle

US dollar continues to strengthen as risk trades struggle

The market is pricing in a higher path for the Fed funds rate ahead of tomorrow's speech from Fed Chairman Jerome Powell and that means a higher US dollar.

The implied peak is now up to 5.11%, which essentially matched the Fed dot plot of 5.00-5.25% and rates remain at 4.75% through year end.

This comes on a rethink following extraordinarily strong data on Friday on US non-farm payrolls and the ISM services survey. It points to an economy that will be more resilient than believed... Read More

Posted: Feb 6 2023, 15:50
Author Name: forexlive
Views: 110780

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