Jump to content

US Dollar Price Action: Is The US Dollar Peaking?

Recommended Posts

Jun 21, 2022 | DailyFX
Justin McQueen, Strategist


  • USD Peaking?
  • Tighter Bond Spreads to Pressure the US Dollar
  • USD Peaking?

After a subdued start to the week following yesterday’s US holiday, the USD is softer across the board this morning, dipping below the 104 as the Euro bounces back from the 1.05 handle, while GBP breaches 1.23. Now while the USD will benefit from safe-haven flows, with equities beginning to stabilise there is a risk that the USD can continue to drift lower as factors that have underpinned the greenback are beginning to ease.

Following last week’s surprise hike from the SNB, I believe we are starting to shift from monetary policy divergence, which had been a supportive factor for the US Dollar to monetary policy convergence. Aside from the SNB, the ECB will raise rates from next month, while also looking to announce an anti-fragmentation tool. Elsewhere, the RBA, RBNZ and BoC have moved aggressively, meanwhile, the Bank of England have signaled their willingness to act more forcefully (despite their tepid action). The view of monetary policy covergence weighing on the greenback would be even more apparent if the BoJ broke away from its ultra-loose policy and while we aren’t there yet, Japanese Officials have signaled their unease at the rapid depreciation in the Japanese Yen.

For more on this article: US Dollar Price Action: Is The US Dollar Peaking?

US Dollar Price Action: Is The US Dollar Peaking?

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • As crypto adoption explodes in the EU, Bitget is fueling the flames with Builders Meetups – engaging events designed for both crypto veterans and newbies. Imagine learning from the Bitget EU COO Apprentice and crypto bigwigs, then building your network with fellow enthusiasts (potential friends or collaborators!). Plus, expert talks will boost your crypto IQ and there might even be free swag! Bitget goes beyond exchange, fostering the community through educational resources on Bitget Academy and a user-friendly platform that welcomes newcomers to the exciting world of crypto. The "Meet Bitget: Your Gateway to Crypto Trading" event in Bucharest, Romania on July 18th is your chance to dive in – registration is free! Don't miss out and spread the word.
    • Zero gas fees, a massive prize pool, and the potential to bridge the gap between Web2 and Web3? I'm all in. This is exactly what the TON ecosystem needs to thrive. Can't wait to dive into all the activities and explore the potential of TON. Bitget Wallet is truly leading the way
    • It's great to see them expanding their reach and engaging with the crypto community in the Balkans. Networking with other crypto enthusiasts, learning about the latest trends, and potentially meeting the cex's EU COO Apprentice, it's a no-brainer. I'll be spreading the word to my crypto buddies in the region. Can't wait to see what insights and connections will come out of this.
  • Create New...