empty
 
 

19.01.202212:24 Forex Analysis & Reviews: US dollar's sharp growth remains

Exchange Rates 19.01.2022 analysis

A combination of factors related to the upcoming FOMC meeting put pressure on US stocks, resulting in a rise in Treasury bonds, and a noticeable impact on the growth of the US dollar. This month's Fed meeting will be held next week.

US stocks have shown the strongest decline against the Dow Jones Industrial Index this year. The Dow Jones lost 542.42 points, falling by 1.51%.

Exchange Rates 19.01.2022 analysis

The 10-year US Treasury yield rose 10.5 basis points, bringing the current yield to 1.877%. This is the highest level since January 2020.

At the same time, the 30-year Treasury increased 7.7 basis points, resulting in a yield of 2.192%. The yield on short-term two-year Treasuries exceeded 1%, marking the first time that short-term Treasury bonds have returned at this level in two years. Finally, the US dollar sharply increased, gaining 0.66% or 0.629 points, bringing the dollar index to 95.78.

Exchange Rates 19.01.2022 analysis

This sharp change in the market is due to the expectation that the Fed will launch an aggressive series of rate hikes, tightening its current monetary policy to contain rising inflation, which is currently fixed at 7% based on government data published last week, relative to the consumer price index (CPI).

Last Tuesday, Fed Chairman Jerome Powell, speaking before the Senate Committee on Banking, Housing and Urban Affairs about his reappointment, said the Fed would normalize policy by reducing asset purchases while raising interest rates throughout the year.

According to him, the Fed greatly underestimated the rate at which inflationary pressures were rising and pointed out that the Fed's monetary policy should change. He also added that it is currently appropriate to focus on inflationary pressures. Thus, expectations of interest rate hikes this year have changed dramatically, and now, market participants are counting three or four interest rate hikes this year.

*Analisis pasar yang diposting disini dimaksudkan untuk meningkatkan pengetahuan Anda namun tidak untuk memberi instruksi trading.

Irina Yanina,
Pakar analisis InstaForex
© 2007-2022
Manfaat dari rekomendasi para analis saat ini
Akun trading teratas
Buka akun trading

Tinjauan analitis InstaForex akan membuat Anda menyadari sepenuhnya tren pasar! Sebagai klien InstaForex, Anda dilengkapi dengan sejumlah besar layanan gratis untuk trading yang efisien.




  • Trade Wise, Win Devise
    Top up akun anda dengan dana minimal $500, daftar kontes, dan dapatkan peluang untuk memenangkan perangkat seluler.
    GABUNG KONTES
  • Ferrari from InstaForex
    Top up akun anda dengan dana minimal $1.000
    gabung kontes dan menangkan Ferrari
    F8 Tributo
    GABUNG KONTES
  • Chancy Deposit
    Deposit akun anda dengan $3.000 dan menangkan $1.000
    GABUNG KONTES
  • 100% Bonus
    Kesempatan langka untuk mendapatkan bonus 100% pada deposit anda
    DAPATKAN BONUS
  • 55% Bonus
    Ajukan bonus 55% pada setiap deposit anda
    DAPATKAN BONUS
  • 30% Bonus
    Raih bonus 30% setiap kali anda top up
    DAPATKAN BONUS
Tidak bisa bicara sekarang?
Tanyakan pertanyaan anda lewat chat.