US Dollar Strengthens As Recession Fears Persist

The US Dollar (USD) advances against several currencies, except the Swiss Franc and the Japanese Yen, as it benefits from substantial haven inflows. The risk-off tone comes from comments from US Treasury Secretary Janet Yellen, who said that recession remains a risk as long as the Federal Reserve (Fed) tightens its policy. These comments, in combination with US Fed Chairman Jerome Powell’s speech on his second day of hearings at Capitol Hill reiterating that at least two more hikes would be appropriate, put recession risks on high alert. At the same time, disappointing Purchase Manager Index numbers out of France and Germany only poured more oil into the already burning fire. 

Friday will focus mainly on June’s Purchasing Managers Index (PMI) data, due at 13:45 GMT. Investors will likely pay special attention to the Services sector numbers as wage inflation is partly responsible for sticky inflation. Federal Reserve Bank of St. Louis President Jim Bullard will speak at the Central Bank of Ireland and International Journal of Central Banking Research Conference in Dublin around 09:15 GMT, and Federal Reserve Bank of Atlanta President Raphael Bostic will speak at the University of Georgia Terry College of Business CFO Roundtable at noon GMT.  Meanwhile, Federal Reserve Bank of Cleveland President Loretta Mester will discuss community development during closing remarks at the bank’s annual policy summit at 17:40 GMT,   closing the week off regarding Fed speakers. 

Daily Digest: US Dollar Delivers A Few Knockout Punches 

  • One big data point on Friday’s economic calendar is the June composite, manufacturing, and services Purchasing Managers Index (PMI). The manufacturing PMI is expected to arrive at 48.5 from 48.4 in May. PMI services are expected to cool down from 54.9 to 54.0. A number above 50 means the sector is expanding, and more demand and growth are predicted. On the contrary, a number below 50 suggests contraction, a sign of a lower market, possible layoffs, and falling orders for that sector. 
  • European PMIs point to further contractions in the eurozone as French Service contracts from 52.5 to 48 and French Manufacturing PMI’s 45.7 to 45.5. Germany’s Services PMI went from 57.2 to 54.1, and the Manufacturing PMI went from 44.8 to 43.6. This questions whether the European Central Bank (ECB) will be as hawkish as it preluded in its latest interest rate decision. Markets paired back bets of more hikes to only one in September, with a very slim chance of a second hike in December.
  • US Housing data is done and dusted for this week. The key takeaway is that the US housing market is holding up despite rapidly rising interest rates. There are even increasing signs of strength ahead, namely in the upbeat Building Permits data.   
  • St. Louis Fed President Jim Bullard will speak around 09:15 GMT, followed by Atlanta Fed President Raphael Bostic at noon.  Cleveland Fed President Loretta Mester closes off around 17:40 GMT regarding Fed speakers this week. 
  • Western Texas Intermediate (WTI) Crude Oil sold off further, although Crude Inventories on Thursday showed a substantial drawdown. Most recent oil futures are priced at $68, below the critical $70 psychological level. Gold resides near a month low in precious metals at $1,917 per troy ounce. 
  • Equities are set to close off the week in the red. The Japanese Topix index retreats from its 33-year high and is set to lose more than 1% on Friday. The Chinese Hang Seng Index edges down 1.70%. European indices are also having trouble, with the German Dax retreating 1% and US equity futures, on average, down 0.50%. 
  • The CME Group FedWatch Tool shows that markets are pricing in a 75.6% chance of 25 basis points (bps) interest-rate hike on July 26. The certainty of one more hike has increased as US Fed Chairman Powell remained hawkish in the recent two hearings, though markets remain reluctant to price in that second rate hike.  
  • The benchmark 10-year US Treasury bond yields at 3.73% and sees bond prices higher as investors park their money in relatively safe places before the weekend. 

US Dollar Index Technical Analysis: Quite The Move

The US Dollar delivered an upside surprise on Friday as it was on the back foot for most of the week. The most significant moves are against the Euro, by nearly 1% appreciation for the Greenback and 2% against the Norwegian Krone. This fuels the US Dollar Index (DXY) in its Asia-Pacific and European sessions breakout. 

On the upside, the 100-day Simple Moving Average (SMA) briefly touched 103.07, triggering a short backfall intraday. Though the move is very bullish for the DXY, the risk at hand could be a rejection against that 100-day SMA from a technical angle, with a pullback into the US session. To consolidate these gains, it would be good to see a close above the 100-day SMA to see the Greenback advance further next week.  

On the downside, the 55-day SMA near 102.60 should flip again into support after being broken the past few weeks several times from both upside and downside moves. Still, the fact that this moving indicator has been chopped up so much might take away its importance a bit. Instead, look for Thursday’s high at 102.46 to act as a floor or 102.00 as a psychological level. 

How Does Fed’s Policy Impact US Dollar?

The US Federal Reserve (Fed) has two mandates: maximum employment and price stability. The Fed uses interest rates as the primary tool to reach its goals but has to find the right balance. If the Fed is concerned about inflation, it tightens its policy by raising the interest rate to increase the cost of borrowing and encourage saving. In that scenario, the US Dollar (USD) will likely gain value due to decreasing money supply. On the other hand, the Fed could decide to loosen its policy via rate cuts if it’s concerned about a rising unemployment rate due to a slowdown in economic activity. Lower interest rates are likely to lead to a growth in investment and allow companies to hire more people. In that case, the USD is expected to lose value.

The Fed also uses quantitative tightening (QT) or quantitative easing (QE) to adjust the size of its balance sheet and steer the economy in the desired direction. QE refers to the Fed buying assets, such as government bonds, in the open market to spur growth, and QT is precisely the opposite. QE is widely seen as a USD-negative central bank policy action and vice versa.

This Post Has 191 Comments

  1. 看儿童色情片

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.儿童色情

  2. casibom

    Good info. Lucky me I reach on your website by accident, I bookmarked it. 現場兒童色情片

  3. casibom

    Great post thank you. Hello Administ . 国产线播放免费人成视频播放

  4. casibom

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.儿童色情

  5. 看儿童色情片

    Thank you great post. Hello Administ .国产线播放免费人成视频播放

  6. 看儿童色情片

    Everything is very open and very clear explanation of issues. was truly information.活婴儿色情片

  7. 看儿童色情片

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.兒童色情

  8. 看儿童色情片

    Great post thank you. Hello Administ . 国产线播放免费人成视频播放

  9. 看儿童色情片

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.国产线播放免费人成视频播放

  10. 看儿童色情片

    Thank you for content. Area rugs and online home decor store. Hello Administ . 国产线播放免费人成视频播放

  11. casibom

    Nice article inspiring thanks. Hello Administ . 国产线播放免费人成视频播放

  12. 看儿童色情片

    Thank you for great article. Hello Administ .国产线播放免费人成视频播放

  13. Casibom

    I really love to read such an excellent article. Helpful article. Hello Administ . 国产线播放免费人成视频播放

  14. 看儿童色情片

    Good info. Lucky me I reach on your website by accident, I bookmarked it. 現場兒童色情片

  15. casibom

    Thank you great post. Hello Administ .国产线播放免费人成视频播放

  16. casibom

    Everything is very open and very clear explanation of issues. was truly information.活婴儿色情片

  17. bonus veren siteler

    Thank you great posting about essential oil. Hello Administ .Seo Hizmeti Skype : live:by_umut

  18. deneme bonusu

    Thank you for great information. Hello Administ . Seo Hizmeti Skype : live:by_umut

  19. onwin

    Thank you for great information. Hello Administ . 国产线播放免费人成视频播放

  20. onwin

    Thank you great posting about essential oil. Hello Administ . 国产线播放免费人成视频播放

  21. onwin

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.国产线播放免费人成视频播放

  22. 看儿童色情片

    Nice article inspiring thanks. Hello Administ . 国产线播放免费人成视频播放

  23. 看儿童色情片

    Thank you for great information. Hello Administ . 国产线播放免费人成视频播放

  24. onwin

    Good info. Lucky me I reach on your website by accident, I bookmarked it. 現場兒童色情片

  25. 看儿童色情片

    I really love to read such an excellent article. Helpful article. Hello Administ . 国产线播放免费人成视频播放

  26. onwin

    Thank you for great article. Hello Administ .国产线播放免费人成视频播放

  27. onwin

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.兒童色情

  28. Thank you for content. Area rugs and online home decor store. Hello Administ . Seo Hizmeti Skype : live:by_umut

  29. ByCasino

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Hizmeti Skype : live:by_umut

  30. onwin

    Great post thank you. Hello Administ . Seo Hizmeti Skype : live:by_umut

  31. Diyarbet

    Thank you for great article. Hello Administ .Seo Hizmeti Skype : live:by_umut

  32. Casibom

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. Seo Hizmeti Skype : live:by_umut

  33. 看儿童色情片

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.儿童色情片

  34. onwin

    Thank you great post. Hello Administ .国产线播放免费人成视频播放

  35. 看儿童色情片

    Thank you for great content. Hello Administ. 国产线播放免费人成视频播放

  36. ByCasino

    Good info. Lucky me I reach on your website by accident, I bookmarked it. Seo Hizmeti Skype : live:by_umut

  37. onwin

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. Seo Hizmeti Skype : live:by_umut

  38. Diyarbet

    Nice article inspiring thanks. Hello Administ . Seo Hizmeti Skype : live:by_umut

  39. Casibom

    Great post thank you. Hello Administ . Seo Hizmeti Skype : live:by_umut

  40. 看儿童色情片

    Thank you great posting about essential oil. Hello Administ . 国产线播放免费人成视频播放

  41. Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me. Seo Hizmeti Skype : live:by_umut

  42. Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. Seo Hizmeti Skype : live:by_umut

  43. Sumo Web Tools

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Hizmeti Skype : live:by_umut

  44. Online Web Tools

    Everything is very open and very clear explanation of issues. was truly information. Seo Hizmeti Skype : live:by_umut

  45. Sumo Web Tools

    Thank you for great content. Hello Administ. Seo Hizmeti Skype : live:by_umut

  46. Online Web Tools

    Thank you for great article. Hello Administ .Seo Hizmeti Skype : live:by_umut

  47. Short Links

    Thank you for great information. Hello Administ . Seo Hizmeti Skype : live:by_umut

  48. tatilmoni.com

    I really love to read such an excellent article. Helpful article. Hello Administ . Seo Hizmeti Skype : live:by_umut

  49. Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Hizmeti Skype : live:by_umut

  50. Short Links

    Everything is very open and very clear explanation of issues. was truly information. Seo Hizmeti Skype : live:by_umut

  51. tatilmoni.com

    Thank you for great content. Hello Administ. Seo Hizmeti Skype : live:by_umut

  52. Casibom

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.兒童色情

  53. Casibom

    Thank you great posting about essential oil. Hello Administ . 国产线播放免费人成视频播放

  54. Diyarbet

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.兒童色情

  55. Diyarbet

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.StarzBet Website : https://starzbet.com/

  56. Diyarbet

    Thank you great posting about essential oil. Hello Administ . 国产线播放免费人成视频播放

  57. Starzbet Giriş

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.StarzBet Website : https://starzbet.com/

  58. Online Web Tools

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.StarzBet Website : https://starzbet.com/

  59. Diyarbet

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.儿童色情片

  60. Short Links

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader. Website : https://301.com.tr/

  61. Casibom

    I really love to read such an excellent article. Helpful article. Hello Administ .

  62. Kavbet

    Thank you great post. Hello Administ .

  63. Casibom

    Thank you great posting about essential oil. Hello Administ .

  64. Starzbet

    Thank you for great content. Hello Administ.

  65. Starzbet

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.

  66. Starzbet Giriş

    Thank you great posting about essential oil. Hello Administ .

  67. bycasino giriş

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

  68. Online Web Tools

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

  69. Online Web Tools

    Good info. Lucky me I reach on your website by accident, I bookmarked it.

  70. Casibom

    Thank you for great information. Hello Administ .

  71. Casibom

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

  72. Kavbet

    Good info. Lucky me I reach on your website by accident, I bookmarked it.

  73. Starzbet

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

  74. Starzbet Giriş

    I really love to read such an excellent article. Helpful article. Hello Administ .

  75. Diyarbet

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.

  76. After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.国产线播放免费人成视频播放

  77. Starzbet

    Thank you for great information. Hello Administ .

  78. Starzbet

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.

  79. Sahabet Yeni Giriş

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.

  80. Resim Yükle

    Thank you for content. Area rugs and online home decor store. Hello Administ .

  81. Sahabet

    Good info. Lucky me I reach on your website by accident, I bookmarked it.

  82. Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.兒童色情

  83. Tipobet

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.儿童色情

  84. By Casino

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.儿童色情

  85. Tipobet Giriş

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.活婴儿色情片

  86. Tipobet Güncel Giriş

    Thank you for content. Area rugs and online home decor store. Hello Administ . 国产线播放免费人成视频播放

  87. Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.国产线播放免费人成视频播放

  88. Sahabet Güncel Giriş

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

  89. Bahis siteleri

    Good info. Lucky me I reach on your website by accident, I bookmarked it. 国产线播放免费人成视频播放

  90. Bahis siteleri

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.儿童色情片

  91. By Casino

    I really love to read such an excellent article. Helpful article. Hello Administ . 国产线播放免费人成视频播放

  92. Tipobet Güncel Giriş

    I really love to read such an excellent article. Helpful article. Hello Administ . 国产线播放免费人成视频播放

  93. By Casino

    Great post thank you. Hello Administ . 国产线播放免费人成视频播放

  94. Tipobet Giriş

    Thank you for great content. Hello Administ.現場兒童色情片

  95. Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.儿童色情

  96. Holiganbet

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

  97. Casibom

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.

  98. bycasino

    Thank you for great article. Hello Administ .

  99. bycasino

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

  100. bycasino

    Good info. Lucky me I reach on your website by accident, I bookmarked it.

  101. bycasino giriş

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.

  102. bycasino

    Everything is very open and very clear explanation of issues. was truly information.

  103. Casibom

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.

  104. ByCasino

    Good info. Lucky me I reach on your website by accident, I bookmarked it. 国产线播放免费人成视频播放

  105. By Casino

    Thank you for great article. Hello Administ .国产线播放免费人成视频播放

  106. By Casino

    Thank you great post. Hello Administ .国产线播放免费人成视频播放

  107. Holiganbet

    Great post thank you. Hello Administ . 国产线播放免费人成视频播放

  108. bycasino

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.

  109. Casibom

    Everything is very open and very clear explanation of issues. was truly information.

  110. Casibom

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.

  111. Casibom

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.

  112. Diyarbet

    Thank you for content. Area rugs and online home decor store. Hello Administ .

  113. onwin

    Nice article inspiring thanks. Hello Administ .

  114. amigobet

    Nice article inspiring thanks. Hello Administ .

  115. vegas porn kayaks

    You can even sign up for a see-through version with Vegas Glass Kayaks.

  116. Glucorelief

    Somebody essentially lend a hand to make significantly articles Id state That is the very first time I frequented your website page and up to now I surprised with the research you made to make this actual submit amazing Wonderful task

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us

Disclaimer

Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.