US Dollar Hit Another Milestone
As risk aversion prevails, the US dollar index rose to a 20-year high on Tuesday. The dollar index hit 104.19, the highest since Dec 2002. It later retreated 0.14% to 103.63. Comparably, US treasury yields rose to its highest level since November 2018. Check the US Dollar movement here
Fed Members Adamant About Fighting Inflation
Minneapolis Fed President Neel Kashkari revealed on Monday that the central bank is not getting as much help as it wishes from the supply chains to tame inflation. That said, he reassured investors that inflation will be contained ultimately. Follow Fed’s latest update here
“I’m confident we are going to get inflation back down to our 2% target, but I am not yet confident on how much of that burden we’re gonna have to carry versus getting help from the supply side,” Kashkari said.
Elsewhere, Atlanta Fed President Raphael Bostic said on Monday that he expects the Fed to deliver two or three more 50 basis point hikes.
“I would say that (a 75 basis-point rate hike) is a low probability outcome given what I expect will happen in the economy over the next three to four months,” Bostic said.
Despite Kashkari and Bostic’s not too hawkish remarks, investors’ risk-off sentiment hit markets hard.
Upcoming events that may affect the trend of USD:
- Jan 11 — US Consumer Price Index (April)
- Jan 12 — US Producer Price Index (April)
For a look at all of today’s economic events, check out our economic calendar.
This article is prepared by Lucia Han from Mitrade and is for reference only. We do not represent that the material provided here is accurate, current or complete. The article content neither takes into account your personal investment objects nor your financial situation, and therefore it should not be relied upon as such. You should seek for your own advice.