Free Trial

Dollar Remains Solid as Post-Fed Buying Persists Through Europe

  • The greenback continues to trade from strength to strength, and is outstripping all others in G10 early Thursday as the Fed-induced wave of buying persisted across Asia-Pac hours. The USD Index trades within range of two key resistance levels (96.906 and 96.938) which, if broken, put the dollar at the best levels since mid-2020.
  • The hawkish interpretation of the Fed press conference yesterday continues to underpin a tightening of financial conditions, with the front-end of the US yield curve pricing in much tighter policy front March onwards. STIR markets now price in close to 5 hikes across 2022.
  • Outside of the greenback, the single currency is suffering, with the stark perceived policy divergence between the ECB and Fed driving EUR/USD to fresh 2022 lows. Similarly, EUR/GBP is under pressure and lower for a third session. This puts the cross on track to test key support of 0.8305 should weakness persist.
  • The NOK trades well, second to just the USD as oil prices remain well elevated. Brent crude futures topped $90/bbl yesterday for the first time since 2014, with prices holding above that key psychological level at the NY crossover.
  • Advance US Q4 GDP data takes focus going forward, with weekly jobless claims data also due as well as prelim December durables data.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.