The US dollar index (DXY) has been turbulent in recent months, but it is currently gaining traction. This is attributable to a variety of causes, including high inflation, rising interest rates, and strong demand for safe-haven assets. The future for the DXY under present macroeconomic conditions implies that it will continue to be protected against …
The US dollar index (DXY) has been turbulent in recent months, but it is currently gaining traction. This is attributable to a variety of causes, including high inflation, rising interest rates, and strong demand for safe-haven assets. The future for the DXY under present macroeconomic conditions implies that it will continue to be protected against losses.
The S&P 500 is trading below its 50-day moving average, while the yield on six-month Treasury notes remains around 5.5% after the Fed Funds rate was raised to 5.5% in July and is projected to remain at that level at the meeting this week. September favour a hold, with probabilities increasing to 98% from 94% last week. The possibility of a 0.25 raise has dropped from 6% to 2%. November favour a hold, with odds increasing to 72% from 67% last week. The possibility of a 0.25 raise has dropped from 32% to 27%.
The EUR/USD has been rising for the previous nine months, but it is presently falling. This is attributable to a variety of causes, including high inflation, rising interest rates, and strong demand for safe-haven assets. Under the present macroeconomic backdrop, the EUR/USD is expected to be marginally pushed against gains.
The DAX is trading below the 50-day moving average, matching the relatively negative macroeconomic prognosis for the EA, while the yield on six-month German Bunds has gone over 3.7% after the Main Refinancing Operations rate was raised to 4.50% last week.
The GBP/USD has been rising during the last nine months, but it is presently falling. This is attributable to a variety of causes, including high inflation, rising interest rates, and strong demand for safe-haven assets. The forecast for the GBP/USD under present macroeconomic conditions implies that it will be pushed against gains.
Inter-markets are not in agreement with the UK’s pessimistic macroeconomic outlook, with the FTSE 100 moving above the 200-day moving average and the yield on six-month Gilt Bonds remaining around 5.70%, while the Bank rate was raised to 5.25% last month and is expected to be raised to 5.50% this week.
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Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.
