The USD is gaining steam again. Overview for 22.06.2022

EURUSD couldn’t keep its positive momentum – the asset is retreating.

The major currency pair got under pressure again in the middle of the week. The current quote for the instrument is 1.0499.

According to the BBVA, the US bond yield might continue rising until the moment the US Fed stops raising its benchmark interest rate. And it sounds about right – future expectations imply 3.4% in the middle of 2023. The US bond yield is steadily growing and providing the “greenback” with significant support.

In addition, the American currency is once again in the spotlight due to global risk aversion.

At the same time, the Euro gets little support because the European Central Bank is not as aggressive when it comes to the rate hikes as the American regulator. The closest rate hike might occur in two months, so why worry now?

Later today, US Fed Chairman Jerome Powell is scheduled to speak. If his comments about the regulator’s monetary policy are “hawkish” enough, the USD will have more reasons to continue rising.

Investors are slowly switching their attention to Thursday, when the Euro Area will report on the PMIs. If the numbers are stronger than expected, it will tip the scales in favour of the Euro.

Trade the News!

Seize the market opportunities!
Start trading with a reliable broker.
Let an expert help you get started!

Source: RoboForex


Leave a Reply

Your email address will not be published.

Trade the News!

Seize the market opportunities today! Start trading with a safe and reliable broker.

Let's help you get started!