Month: September 2022

Gold and Silver edge higher on softer dollar and bond yields

Posted on by Vrasidas Neofytou

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

The DXY-dollar index fell to near a one-week low of 111,60 touched on Friday morning on some profit-taking trades, after climbing to a 20-year high of 114,70 mark in the previews day, as the Federal Reserve maintains an aggressive policy stance to tackle soaring inflation.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

The DXY-dollar index fell to near a one-week low of 111,60 touched on Friday morning on some profit-taking trades, after climbing to a 20-year high of 114,70 mark in the previews day, as the Federal Reserve maintains an aggressive policy stance to tackle soaring inflation.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

Even though both metals are heading for their biggest weekly gains since August, the aggressive monetary policy tightening by Federal Reserve and the growing fears over slowing global economic growth is giving support to the dollar and bond yields, adding a cap on the gains and the upward price momentum on the precious metals.

The DXY-dollar index fell to near a one-week low of 111,60 touched on Friday morning on some profit-taking trades, after climbing to a 20-year high of 114,70 mark in the previews day, as the Federal Reserve maintains an aggressive policy stance to tackle soaring inflation.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

Even though both metals are heading for their biggest weekly gains since August, the aggressive monetary policy tightening by Federal Reserve and the growing fears over slowing global economic growth is giving support to the dollar and bond yields, adding a cap on the gains and the upward price momentum on the precious metals.

The DXY-dollar index fell to near a one-week low of 111,60 touched on Friday morning on some profit-taking trades, after climbing to a 20-year high of 114,70 mark in the previews day, as the Federal Reserve maintains an aggressive policy stance to tackle soaring inflation.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

Both greenback and bonds yields have been slightly retreating across the board from their two-decade highs hit this week, triggering a relief mini-rally in the dollar-denominated Gold and Silver since they are becoming less expensive for buyers with other currencies.

Even though both metals are heading for their biggest weekly gains since August, the aggressive monetary policy tightening by Federal Reserve and the growing fears over slowing global economic growth is giving support to the dollar and bond yields, adding a cap on the gains and the upward price momentum on the precious metals.

The DXY-dollar index fell to near a one-week low of 111,60 touched on Friday morning on some profit-taking trades, after climbing to a 20-year high of 114,70 mark in the previews day, as the Federal Reserve maintains an aggressive policy stance to tackle soaring inflation.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

Both greenback and bonds yields have been slightly retreating across the board from their two-decade highs hit this week, triggering a relief mini-rally in the dollar-denominated Gold and Silver since they are becoming less expensive for buyers with other currencies.

Even though both metals are heading for their biggest weekly gains since August, the aggressive monetary policy tightening by Federal Reserve and the growing fears over slowing global economic growth is giving support to the dollar and bond yields, adding a cap on the gains and the upward price momentum on the precious metals.

The DXY-dollar index fell to near a one-week low of 111,60 touched on Friday morning on some profit-taking trades, after climbing to a 20-year high of 114,70 mark in the previews day, as the Federal Reserve maintains an aggressive policy stance to tackle soaring inflation.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

Gold futures, 2-hour chart

Both greenback and bonds yields have been slightly retreating across the board from their two-decade highs hit this week, triggering a relief mini-rally in the dollar-denominated Gold and Silver since they are becoming less expensive for buyers with other currencies.

Even though both metals are heading for their biggest weekly gains since August, the aggressive monetary policy tightening by Federal Reserve and the growing fears over slowing global economic growth is giving support to the dollar and bond yields, adding a cap on the gains and the upward price momentum on the precious metals.

The DXY-dollar index fell to near a one-week low of 111,60 touched on Friday morning on some profit-taking trades, after climbing to a 20-year high of 114,70 mark in the previews day, as the Federal Reserve maintains an aggressive policy stance to tackle soaring inflation.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

Gold futures, 2-hour chart

Both greenback and bonds yields have been slightly retreating across the board from their two-decade highs hit this week, triggering a relief mini-rally in the dollar-denominated Gold and Silver since they are becoming less expensive for buyers with other currencies.

Even though both metals are heading for their biggest weekly gains since August, the aggressive monetary policy tightening by Federal Reserve and the growing fears over slowing global economic growth is giving support to the dollar and bond yields, adding a cap on the gains and the upward price momentum on the precious metals.

The DXY-dollar index fell to near a one-week low of 111,60 touched on Friday morning on some profit-taking trades, after climbing to a 20-year high of 114,70 mark in the previews day, as the Federal Reserve maintains an aggressive policy stance to tackle soaring inflation.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

Gold futures, 2-hour chart

Both greenback and bonds yields have been slightly retreating across the board from their two-decade highs hit this week, triggering a relief mini-rally in the dollar-denominated Gold and Silver since they are becoming less expensive for buyers with other currencies.

Even though both metals are heading for their biggest weekly gains since August, the aggressive monetary policy tightening by Federal Reserve and the growing fears over slowing global economic growth is giving support to the dollar and bond yields, adding a cap on the gains and the upward price momentum on the precious metals.

The DXY-dollar index fell to near a one-week low of 111,60 touched on Friday morning on some profit-taking trades, after climbing to a 20-year high of 114,70 mark in the previews day, as the Federal Reserve maintains an aggressive policy stance to tackle soaring inflation.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

The yellow metal rose to near $1,670/oz on Friday morning supported by a softer dollar and bond yields, gaining more than $65/oz since bottoming at $1,615/oz on Wednesday, while the white metal broke above the $19/oz resistance level after posting a monthly low of $18/oz for the same period, despite Fed’s aggressiveness.

Gold futures, 2-hour chart

Both greenback and bonds yields have been slightly retreating across the board from their two-decade highs hit this week, triggering a relief mini-rally in the dollar-denominated Gold and Silver since they are becoming less expensive for buyers with other currencies.

Even though both metals are heading for their biggest weekly gains since August, the aggressive monetary policy tightening by Federal Reserve and the growing fears over slowing global economic growth is giving support to the dollar and bond yields, adding a cap on the gains and the upward price momentum on the precious metals.

The DXY-dollar index fell to near a one-week low of 111,60 touched on Friday morning on some profit-taking trades, after climbing to a 20-year high of 114,70 mark in the previews day, as the Federal Reserve maintains an aggressive policy stance to tackle soaring inflation.

The yield on the benchmark 10-year U.S. Treasury was down to 3.68% this morning, retreating from a 14-year high of 4% hit on Wednesday, while the policy-sensitive 2-year Treasury also fell to near 4.15%, well below the 4,35% record highs.

Though gold is seen as a hedge against soaring inflation, economic uncertainties, and geopolitical risks, a series of aggressive U.S. rate hikes this year have dented the non-yielding bullion’s appeal and lifted the dollar to a two-decade peak.

Scam Communications and How to Avoid Them

Posted on by Exclusive Capital Team

Further information:

You can find further information on scams and how to avoid them on the Cyprus Securities and Exchange Commission website.

In addition, if you’ve given your bank account details to an individual or an entity you have reasons to believe it may be a scam, tell your bank accordingly, as it may be able to cancel the transaction.

Further information:

You can find further information on scams and how to avoid them on the Cyprus Securities and Exchange Commission website.

If you suspect a scam, report it:
Should you have any suspicion about a potential scam relating to the Company and/or come across any other website which includes the Company’s details and/or you are approached by individuals claiming to be representing the Company, inform us immediately at [email protected]

In addition, if you’ve given your bank account details to an individual or an entity you have reasons to believe it may be a scam, tell your bank accordingly, as it may be able to cancel the transaction.

Further information:

You can find further information on scams and how to avoid them on the Cyprus Securities and Exchange Commission website.

The Company would like to emphasize that all official communication channels are available on its sole official and authorised website.

If you suspect a scam, report it:
Should you have any suspicion about a potential scam relating to the Company and/or come across any other website which includes the Company’s details and/or you are approached by individuals claiming to be representing the Company, inform us immediately at [email protected]

In addition, if you’ve given your bank account details to an individual or an entity you have reasons to believe it may be a scam, tell your bank accordingly, as it may be able to cancel the transaction.

Further information:

You can find further information on scams and how to avoid them on the Cyprus Securities and Exchange Commission website.

The Company takes the opportunity to warn you that:

  1. It will never request from you any sensitive personal data over the phone.
  2. It will never call you, and if it does, you can end the call and then call the Company back at a telephone number available on its official website under “Contact Us”.
  3. It does not operate under any other domain/ website or via any other entity.

The Company would like to emphasize that all official communication channels are available on its sole official and authorised website.

If you suspect a scam, report it:
Should you have any suspicion about a potential scam relating to the Company and/or come across any other website which includes the Company’s details and/or you are approached by individuals claiming to be representing the Company, inform us immediately at [email protected]

In addition, if you’ve given your bank account details to an individual or an entity you have reasons to believe it may be a scam, tell your bank accordingly, as it may be able to cancel the transaction.

Further information:

You can find further information on scams and how to avoid them on the Cyprus Securities and Exchange Commission website.

Keeping yourself secured:

The Company takes the opportunity to warn you that:

  1. It will never request from you any sensitive personal data over the phone.
  2. It will never call you, and if it does, you can end the call and then call the Company back at a telephone number available on its official website under “Contact Us”.
  3. It does not operate under any other domain/ website or via any other entity.

The Company would like to emphasize that all official communication channels are available on its sole official and authorised website.

If you suspect a scam, report it:
Should you have any suspicion about a potential scam relating to the Company and/or come across any other website which includes the Company’s details and/or you are approached by individuals claiming to be representing the Company, inform us immediately at [email protected]

In addition, if you’ve given your bank account details to an individual or an entity you have reasons to believe it may be a scam, tell your bank accordingly, as it may be able to cancel the transaction.

Further information:

You can find further information on scams and how to avoid them on the Cyprus Securities and Exchange Commission website.

The Company would like to bring to your attention that often scammers/fraudsters’ actions can seem to be convincing and legitimate as they appear to be sophisticated, having knowledge about your affairs, impersonating law firm employees, associates, tax authorities, or employees of the Company, using professional behaviour and seemingly credible websites with the Company’s details. Therefore, it is important to be vigilant since the Company will not be able to recover any funds for you if you get scammed.

Keeping yourself secured:

The Company takes the opportunity to warn you that:

  1. It will never request from you any sensitive personal data over the phone.
  2. It will never call you, and if it does, you can end the call and then call the Company back at a telephone number available on its official website under “Contact Us”.
  3. It does not operate under any other domain/ website or via any other entity.

The Company would like to emphasize that all official communication channels are available on its sole official and authorised website.

If you suspect a scam, report it:
Should you have any suspicion about a potential scam relating to the Company and/or come across any other website which includes the Company’s details and/or you are approached by individuals claiming to be representing the Company, inform us immediately at [email protected]

In addition, if you’ve given your bank account details to an individual or an entity you have reasons to believe it may be a scam, tell your bank accordingly, as it may be able to cancel the transaction.

Further information:

You can find further information on scams and how to avoid them on the Cyprus Securities and Exchange Commission website.

If you receive any communication claiming to be from Exclusive Change Capital Ltd (the “Company”), or any of the Company’s employees and associates for which you are uncertain or suspicious, do not provide any personal or confidential information prior to reassurance with the Company.

The Company would like to bring to your attention that often scammers/fraudsters’ actions can seem to be convincing and legitimate as they appear to be sophisticated, having knowledge about your affairs, impersonating law firm employees, associates, tax authorities, or employees of the Company, using professional behaviour and seemingly credible websites with the Company’s details. Therefore, it is important to be vigilant since the Company will not be able to recover any funds for you if you get scammed.

Keeping yourself secured:

The Company takes the opportunity to warn you that:

  1. It will never request from you any sensitive personal data over the phone.
  2. It will never call you, and if it does, you can end the call and then call the Company back at a telephone number available on its official website under “Contact Us”.
  3. It does not operate under any other domain/ website or via any other entity.

The Company would like to emphasize that all official communication channels are available on its sole official and authorised website.

If you suspect a scam, report it:
Should you have any suspicion about a potential scam relating to the Company and/or come across any other website which includes the Company’s details and/or you are approached by individuals claiming to be representing the Company, inform us immediately at [email protected]

In addition, if you’ve given your bank account details to an individual or an entity you have reasons to believe it may be a scam, tell your bank accordingly, as it may be able to cancel the transaction.

Further information:

You can find further information on scams and how to avoid them on the Cyprus Securities and Exchange Commission website.

If you receive any communication claiming to be from Exclusive Change Capital Ltd (the “Company”), or any of the Company’s employees and associates for which you are uncertain or suspicious, do not provide any personal or confidential information prior to reassurance with the Company.

The Company would like to bring to your attention that often scammers/fraudsters’ actions can seem to be convincing and legitimate as they appear to be sophisticated, having knowledge about your affairs, impersonating law firm employees, associates, tax authorities, or employees of the Company, using professional behaviour and seemingly credible websites with the Company’s details. Therefore, it is important to be vigilant since the Company will not be able to recover any funds for you if you get scammed.

Keeping yourself secured:

The Company takes the opportunity to warn you that:

  1. It will never request from you any sensitive personal data over the phone.
  2. It will never call you, and if it does, you can end the call and then call the Company back at a telephone number available on its official website under “Contact Us”.
  3. It does not operate under any other domain/ website or via any other entity.

The Company would like to emphasize that all official communication channels are available on its sole official and authorised website.

If you suspect a scam, report it:
Should you have any suspicion about a potential scam relating to the Company and/or come across any other website which includes the Company’s details and/or you are approached by individuals claiming to be representing the Company, inform us immediately at [email protected]

In addition, if you’ve given your bank account details to an individual or an entity you have reasons to believe it may be a scam, tell your bank accordingly, as it may be able to cancel the transaction.

Further information:

You can find further information on scams and how to avoid them on the Cyprus Securities and Exchange Commission website.

Market volatility after BoE’s bond market intervention

Posted on by Vrasidas Neofytou

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The recent selloff on the Pound Sterling and UK bond market driven by the release of the new government’s so-called “mini-budget.”, has prompted the Bank of England to intervene in the UK bond market and put an end to the market chaos.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The recent selloff on the Pound Sterling and UK bond market driven by the release of the new government’s so-called “mini-budget.”, has prompted the Bank of England to intervene in the UK bond market and put an end to the market chaos.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

BoE’s bond market intervention:

The recent selloff on the Pound Sterling and UK bond market driven by the release of the new government’s so-called “mini-budget.”, has prompted the Bank of England to intervene in the UK bond market and put an end to the market chaos.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

BoE’s bond market intervention:

The recent selloff on the Pound Sterling and UK bond market driven by the release of the new government’s so-called “mini-budget.”, has prompted the Bank of England to intervene in the UK bond market and put an end to the market chaos.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

However, after a bit of relief rally yesterday, broader market sentiment is turning again lower during Thursday’s European morning trading session, with most of the stock indices diving over 1%. At the same time, the safety dollar has resumed its upward trend momentum which is adding fresh pressure across the board.

BoE’s bond market intervention:

The recent selloff on the Pound Sterling and UK bond market driven by the release of the new government’s so-called “mini-budget.”, has prompted the Bank of England to intervene in the UK bond market and put an end to the market chaos.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

However, after a bit of relief rally yesterday, broader market sentiment is turning again lower during Thursday’s European morning trading session, with most of the stock indices diving over 1%. At the same time, the safety dollar has resumed its upward trend momentum which is adding fresh pressure across the board.

BoE’s bond market intervention:

The recent selloff on the Pound Sterling and UK bond market driven by the release of the new government’s so-called “mini-budget.”, has prompted the Bank of England to intervene in the UK bond market and put an end to the market chaos.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

A wild and steep selloff in the global markets and a rally to the safety dollar and bond yields amid growing concerns over the record-high inflation and the economic growth outlook took an unexpected turn on Wednesday after the Bank of England stepped in to prevent the collapse in the British bond market, spurring a sharp rally across the board.

However, after a bit of relief rally yesterday, broader market sentiment is turning again lower during Thursday’s European morning trading session, with most of the stock indices diving over 1%. At the same time, the safety dollar has resumed its upward trend momentum which is adding fresh pressure across the board.

BoE’s bond market intervention:

The recent selloff on the Pound Sterling and UK bond market driven by the release of the new government’s so-called “mini-budget.”, has prompted the Bank of England to intervene in the UK bond market and put an end to the market chaos.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

A wild and steep selloff in the global markets and a rally to the safety dollar and bond yields amid growing concerns over the record-high inflation and the economic growth outlook took an unexpected turn on Wednesday after the Bank of England stepped in to prevent the collapse in the British bond market, spurring a sharp rally across the board.

However, after a bit of relief rally yesterday, broader market sentiment is turning again lower during Thursday’s European morning trading session, with most of the stock indices diving over 1%. At the same time, the safety dollar has resumed its upward trend momentum which is adding fresh pressure across the board.

BoE’s bond market intervention:

The recent selloff on the Pound Sterling and UK bond market driven by the release of the new government’s so-called “mini-budget.”, has prompted the Bank of England to intervene in the UK bond market and put an end to the market chaos.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

The recent intervention by the Bank of England in the UK bond market to stabilize the cratering Pound Sterling has increased the trading volatility across the board again, triggering large swings in the forex and the stock, bond, and commodity markets around the world.

A wild and steep selloff in the global markets and a rally to the safety dollar and bond yields amid growing concerns over the record-high inflation and the economic growth outlook took an unexpected turn on Wednesday after the Bank of England stepped in to prevent the collapse in the British bond market, spurring a sharp rally across the board.

However, after a bit of relief rally yesterday, broader market sentiment is turning again lower during Thursday’s European morning trading session, with most of the stock indices diving over 1%. At the same time, the safety dollar has resumed its upward trend momentum which is adding fresh pressure across the board.

BoE’s bond market intervention:

The recent selloff on the Pound Sterling and UK bond market driven by the release of the new government’s so-called “mini-budget.”, has prompted the Bank of England to intervene in the UK bond market and put an end to the market chaos.

The BoE has suspended the planned start of its bond selling next week and had committed to buying as many long-dated (40-year) government bonds, known as “Gilts”, as needed between Wednesday, September 28 to October 14, to calm the market anxiety and steady the falling Pound Sterling.

Market reaction:

The BoE intervention was driving currency trading broadly yesterday, increasing the appetite among forex traders for some beaten-down risk-sensitive currencies such as Pound Sterling, Euro, Australian, and New Zealand dollars, and Cryptocurrencies, helping them to post a relief rally against the crisis-winner U.S. dollar.

GBP/USD pair, 1-hour chart

After falling as low as $1,035 to a dollar on Monday morning, Pound Sterling recovered to as high as $1,09 during Wednesday’s trading session following the BoE announcement.

Yet, the relief for the Sterling was temporary as it retreated on Thursday morning towards the $1,08 level, following UK PM Truss’s comments about the UK fiscal plan, and coupled with the ongoing fears for the UK economic growth outlook and the high inflation.

The DXY-U.S dollar index, which measures the greenback against a group of major currencies, hit an intraday low of 112.60 on Wednesday afternoon after the BoE announcement, before bouncing back to near 113,40 on Thursday morning.

The greenback recorded a fresh 20-year high of 114.78 on Wednesday morning driven by the Fed’s aggressiveness to curb inflation and the safe-haven bets during the recent stock market selloff.

Risk-sensitive Australian and New Zealand dollars also jumped off recent yearly lows towards $0,65 and $0,57 levels respectively, or up nearly 1,5%, before retreating lower today following the risk-off mood.

BoE actions had also triggered a broad rally for stocks worldwide, with all three U.S. stock indices ending Wednesday session higher by 2%, snapping a six-day losing streak, with European and Asian stocks indices following the overnight relief rally on Wall Street.

Dow Jones enters bear market for the first time since Covid-led 2020 bottom

Posted on by Vrasidas Neofytou

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

Investment confidence has shaken amongst stock traders by the prospects of a global recession driven by higher interest rates, the soaring U.S. dollar and bond yields, the surging inflation, and the ongoing Russia-Ukraine war.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

Investment confidence has shaken amongst stock traders by the prospects of a global recession driven by higher interest rates, the soaring U.S. dollar and bond yields, the surging inflation, and the ongoing Russia-Ukraine war.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

A bear market occurs when an index drops by 20% or more from a recent high, but there is nothing official about the determination, and it’s the opposite of a bull market.

Investment confidence has shaken amongst stock traders by the prospects of a global recession driven by higher interest rates, the soaring U.S. dollar and bond yields, the surging inflation, and the ongoing Russia-Ukraine war.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

A bear market occurs when an index drops by 20% or more from a recent high, but there is nothing official about the determination, and it’s the opposite of a bull market.

Investment confidence has shaken amongst stock traders by the prospects of a global recession driven by higher interest rates, the soaring U.S. dollar and bond yields, the surging inflation, and the ongoing Russia-Ukraine war.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

The 30-stock index settled at 29,260 points yesterday, marking its fifth down trading day in a row, and recording a total loss of about 20.4% from its January 04, 2022, closing high. The move pushed the index into a bear market for the first time in more than two years, following in tandem with the other two major indices S&P500 and the tech-heavy Nasdaq Composite which have already entered a bear market in early summer.

A bear market occurs when an index drops by 20% or more from a recent high, but there is nothing official about the determination, and it’s the opposite of a bull market.

Investment confidence has shaken amongst stock traders by the prospects of a global recession driven by higher interest rates, the soaring U.S. dollar and bond yields, the surging inflation, and the ongoing Russia-Ukraine war.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

The 30-stock index settled at 29,260 points yesterday, marking its fifth down trading day in a row, and recording a total loss of about 20.4% from its January 04, 2022, closing high. The move pushed the index into a bear market for the first time in more than two years, following in tandem with the other two major indices S&P500 and the tech-heavy Nasdaq Composite which have already entered a bear market in early summer.

A bear market occurs when an index drops by 20% or more from a recent high, but there is nothing official about the determination, and it’s the opposite of a bull market.

Investment confidence has shaken amongst stock traders by the prospects of a global recession driven by higher interest rates, the soaring U.S. dollar and bond yields, the surging inflation, and the ongoing Russia-Ukraine war.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

Dow Jones index, Daily chart

The 30-stock index settled at 29,260 points yesterday, marking its fifth down trading day in a row, and recording a total loss of about 20.4% from its January 04, 2022, closing high. The move pushed the index into a bear market for the first time in more than two years, following in tandem with the other two major indices S&P500 and the tech-heavy Nasdaq Composite which have already entered a bear market in early summer.

A bear market occurs when an index drops by 20% or more from a recent high, but there is nothing official about the determination, and it’s the opposite of a bull market.

Investment confidence has shaken amongst stock traders by the prospects of a global recession driven by higher interest rates, the soaring U.S. dollar and bond yields, the surging inflation, and the ongoing Russia-Ukraine war.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

Dow Jones index, Daily chart

The 30-stock index settled at 29,260 points yesterday, marking its fifth down trading day in a row, and recording a total loss of about 20.4% from its January 04, 2022, closing high. The move pushed the index into a bear market for the first time in more than two years, following in tandem with the other two major indices S&P500 and the tech-heavy Nasdaq Composite which have already entered a bear market in early summer.

A bear market occurs when an index drops by 20% or more from a recent high, but there is nothing official about the determination, and it’s the opposite of a bull market.

Investment confidence has shaken amongst stock traders by the prospects of a global recession driven by higher interest rates, the soaring U.S. dollar and bond yields, the surging inflation, and the ongoing Russia-Ukraine war.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

Dow Jones index, Daily chart

The 30-stock index settled at 29,260 points yesterday, marking its fifth down trading day in a row, and recording a total loss of about 20.4% from its January 04, 2022, closing high. The move pushed the index into a bear market for the first time in more than two years, following in tandem with the other two major indices S&P500 and the tech-heavy Nasdaq Composite which have already entered a bear market in early summer.

A bear market occurs when an index drops by 20% or more from a recent high, but there is nothing official about the determination, and it’s the opposite of a bull market.

Investment confidence has shaken amongst stock traders by the prospects of a global recession driven by higher interest rates, the soaring U.S. dollar and bond yields, the surging inflation, and the ongoing Russia-Ukraine war.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

The Dow Jones index lost nearly 330 points on Monday, or 1,1% down, slipping deeper into a bear market territory after falling more than 20% below its record high, hit on the first week of the year, as the expectations of higher-for-longer interest rates following the Fed’s hawkishness, coupled with the surging dollar and bond yields triggered a stock selloff across the board.

Dow Jones index, Daily chart

The 30-stock index settled at 29,260 points yesterday, marking its fifth down trading day in a row, and recording a total loss of about 20.4% from its January 04, 2022, closing high. The move pushed the index into a bear market for the first time in more than two years, following in tandem with the other two major indices S&P500 and the tech-heavy Nasdaq Composite which have already entered a bear market in early summer.

A bear market occurs when an index drops by 20% or more from a recent high, but there is nothing official about the determination, and it’s the opposite of a bull market.

Investment confidence has shaken amongst stock traders by the prospects of a global recession driven by higher interest rates, the soaring U.S. dollar and bond yields, the surging inflation, and the ongoing Russia-Ukraine war.

The slowing economic environment could trim corporate earnings, hit hard both manufacturing and consumer spending, and bring extra volatility in the financial and currency markets.

Investors fear that the global central banks led by Federal Reserve, ECB, and BoE, would keep aggressively hiking interest rates to fight decades-high inflation, increasing the chance of the global economy falling into a recession.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise last Wednesday, with more hikes expected at the next FOMC meetings as the Fed fights high inflation.

U.S. dollar hits decades highs against Euro, Pound Sterling, and Yen

Posted on by Vrasidas Neofytou

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

The British Pound fell as much as 5% to an all-time low of $1,038 on Monday Asian’s trading session before bouncing to near $1,07 during the kick-off of the European session.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

Euro and Pound Sterling hit fresh record lows:

The British Pound fell as much as 5% to an all-time low of $1,038 on Monday Asian’s trading session before bouncing to near $1,07 during the kick-off of the European session.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

The greenback has been getting also support from the ongoing rally in the U.S. bond yields, with the 2-year and 10-year Treasury rates hitting a decade high of 4,30% and 3,77% respectively on Monday morning.

Euro and Pound Sterling hit fresh record lows:

The British Pound fell as much as 5% to an all-time low of $1,038 on Monday Asian’s trading session before bouncing to near $1,07 during the kick-off of the European session.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

Fed’s Chairman Jerome Powell-at the conclusion of the FOMC meeting last week- said that the central bank could raise rates as high as 4.6% in 2023 before pulling back. The forecast also shows that the Fed plans to stay aggressive this year, hiking rates to 4.4% before 2022.

The greenback has been getting also support from the ongoing rally in the U.S. bond yields, with the 2-year and 10-year Treasury rates hitting a decade high of 4,30% and 3,77% respectively on Monday morning.

Euro and Pound Sterling hit fresh record lows:

The British Pound fell as much as 5% to an all-time low of $1,038 on Monday Asian’s trading session before bouncing to near $1,07 during the kick-off of the European session.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

Investors are strongly bullish on the greenback following the Federal Reserve’s commitment to its aggressive rate hiking plan to fight the 40-year high inflation in the country.

Fed’s Chairman Jerome Powell-at the conclusion of the FOMC meeting last week- said that the central bank could raise rates as high as 4.6% in 2023 before pulling back. The forecast also shows that the Fed plans to stay aggressive this year, hiking rates to 4.4% before 2022.

The greenback has been getting also support from the ongoing rally in the U.S. bond yields, with the 2-year and 10-year Treasury rates hitting a decade high of 4,30% and 3,77% respectively on Monday morning.

Euro and Pound Sterling hit fresh record lows:

The British Pound fell as much as 5% to an all-time low of $1,038 on Monday Asian’s trading session before bouncing to near $1,07 during the kick-off of the European session.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

Dollar rallies on bullish fundamentals:

Investors are strongly bullish on the greenback following the Federal Reserve’s commitment to its aggressive rate hiking plan to fight the 40-year high inflation in the country.

Fed’s Chairman Jerome Powell-at the conclusion of the FOMC meeting last week- said that the central bank could raise rates as high as 4.6% in 2023 before pulling back. The forecast also shows that the Fed plans to stay aggressive this year, hiking rates to 4.4% before 2022.

The greenback has been getting also support from the ongoing rally in the U.S. bond yields, with the 2-year and 10-year Treasury rates hitting a decade high of 4,30% and 3,77% respectively on Monday morning.

Euro and Pound Sterling hit fresh record lows:

The British Pound fell as much as 5% to an all-time low of $1,038 on Monday Asian’s trading session before bouncing to near $1,07 during the kick-off of the European session.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

DXY-U.S. dollar index, Weekly chart

Dollar rallies on bullish fundamentals:

Investors are strongly bullish on the greenback following the Federal Reserve’s commitment to its aggressive rate hiking plan to fight the 40-year high inflation in the country.

Fed’s Chairman Jerome Powell-at the conclusion of the FOMC meeting last week- said that the central bank could raise rates as high as 4.6% in 2023 before pulling back. The forecast also shows that the Fed plans to stay aggressive this year, hiking rates to 4.4% before 2022.

The greenback has been getting also support from the ongoing rally in the U.S. bond yields, with the 2-year and 10-year Treasury rates hitting a decade high of 4,30% and 3,77% respectively on Monday morning.

Euro and Pound Sterling hit fresh record lows:

The British Pound fell as much as 5% to an all-time low of $1,038 on Monday Asian’s trading session before bouncing to near $1,07 during the kick-off of the European session.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

DXY-U.S. dollar index, Weekly chart

Dollar rallies on bullish fundamentals:

Investors are strongly bullish on the greenback following the Federal Reserve’s commitment to its aggressive rate hiking plan to fight the 40-year high inflation in the country.

Fed’s Chairman Jerome Powell-at the conclusion of the FOMC meeting last week- said that the central bank could raise rates as high as 4.6% in 2023 before pulling back. The forecast also shows that the Fed plans to stay aggressive this year, hiking rates to 4.4% before 2022.

The greenback has been getting also support from the ongoing rally in the U.S. bond yields, with the 2-year and 10-year Treasury rates hitting a decade high of 4,30% and 3,77% respectively on Monday morning.

Euro and Pound Sterling hit fresh record lows:

The British Pound fell as much as 5% to an all-time low of $1,038 on Monday Asian’s trading session before bouncing to near $1,07 during the kick-off of the European session.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

The DXY-dollar index hit a fresh 20-year high of 114,50 on early Monday morning, pushing other major peers such as the Euro, Pound Sterling, and Japanese Yen to post new decades lows, as the greenback continued to benefit from the Fed’s hawkish stance and the safe-haven trades due to the risk aversion sentiment across the board.

DXY-U.S. dollar index, Weekly chart

Dollar rallies on bullish fundamentals:

Investors are strongly bullish on the greenback following the Federal Reserve’s commitment to its aggressive rate hiking plan to fight the 40-year high inflation in the country.

Fed’s Chairman Jerome Powell-at the conclusion of the FOMC meeting last week- said that the central bank could raise rates as high as 4.6% in 2023 before pulling back. The forecast also shows that the Fed plans to stay aggressive this year, hiking rates to 4.4% before 2022.

The greenback has been getting also support from the ongoing rally in the U.S. bond yields, with the 2-year and 10-year Treasury rates hitting a decade high of 4,30% and 3,77% respectively on Monday morning.

Euro and Pound Sterling hit fresh record lows:

The British Pound fell as much as 5% to an all-time low of $1,038 on Monday Asian’s trading session before bouncing to near $1,07 during the kick-off of the European session.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

The DXY-dollar index hit a fresh 20-year high of 114,50 on early Monday morning, pushing other major peers such as the Euro, Pound Sterling, and Japanese Yen to post new decades lows, as the greenback continued to benefit from the Fed’s hawkish stance and the safe-haven trades due to the risk aversion sentiment across the board.

DXY-U.S. dollar index, Weekly chart

Dollar rallies on bullish fundamentals:

Investors are strongly bullish on the greenback following the Federal Reserve’s commitment to its aggressive rate hiking plan to fight the 40-year high inflation in the country.

Fed’s Chairman Jerome Powell-at the conclusion of the FOMC meeting last week- said that the central bank could raise rates as high as 4.6% in 2023 before pulling back. The forecast also shows that the Fed plans to stay aggressive this year, hiking rates to 4.4% before 2022.

The greenback has been getting also support from the ongoing rally in the U.S. bond yields, with the 2-year and 10-year Treasury rates hitting a decade high of 4,30% and 3,77% respectively on Monday morning.

Euro and Pound Sterling hit fresh record lows:

The British Pound fell as much as 5% to an all-time low of $1,038 on Monday Asian’s trading session before bouncing to near $1,07 during the kick-off of the European session.

Forex traders have not been convinced yet by the new UK government fiscal measures announced last week to support the falling economy (tax reductions and stimulus measures), despite the recent rate hikes from the Bank of England to fight local inflation.

Euro also hit a fresh 22-year low of $0,955 this morning before recovering higher towards the $0,97 level as investors are concerned over the deteriorating economic conditions in Eurozone due to the ongoing energy crisis, the high inflation, and the recently escalating situation in the Russia-Ukraine war.

Dollar strength against Yen:

The dollar climbed back to pre-intervened levels of ¥144 to the Japanese Yen, trading just below a 24-year high of ¥146 hit last week.

The forex traders remain bullish on the USD/JPY pair amid the FED-BoJ monetary policy divergence which creates an interest-rate differential that supports the dollar against the yen.

The widening gap in the U.S. and Japanese interest rates occurs as the hawkish Fed increases the rates to curb inflation when BoJ maintains the zero-rate ultra-dovish monetary policy to support the Covid-hit local companies and boost economic activity.

Japanese Yen bounces to ¥142 after BoJ intervention for the first time since 1998

Posted on by Vrasidas Neofytou

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

Traders have been bearish on the Yen against the U.S. dollar since the hawkish Federal Reserve started hiking interest rates to curb inflation at a time the dovish Bank of Japan has been sticking to its accommodative monetary policy with nearly zero rates, adding more pressure on the Yen across the board.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

Traders have been bearish on the Yen against the U.S. dollar since the hawkish Federal Reserve started hiking interest rates to curb inflation at a time the dovish Bank of Japan has been sticking to its accommodative monetary policy with nearly zero rates, adding more pressure on the Yen across the board.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

The forex intervention surprised the market participants and especially those who have been opening short bets on the Japanese Yen amid the monetary policy divergence as they are bracing for higher U.S. interest rates while expecting anchored Japanese rates to go nowhere anytime soon despite the record-high inflation in Japan.

Traders have been bearish on the Yen against the U.S. dollar since the hawkish Federal Reserve started hiking interest rates to curb inflation at a time the dovish Bank of Japan has been sticking to its accommodative monetary policy with nearly zero rates, adding more pressure on the Yen across the board.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

The forex intervention surprised the market participants and especially those who have been opening short bets on the Japanese Yen amid the monetary policy divergence as they are bracing for higher U.S. interest rates while expecting anchored Japanese rates to go nowhere anytime soon despite the record-high inflation in Japan.

Traders have been bearish on the Yen against the U.S. dollar since the hawkish Federal Reserve started hiking interest rates to curb inflation at a time the dovish Bank of Japan has been sticking to its accommodative monetary policy with nearly zero rates, adding more pressure on the Yen across the board.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

Yen bounced vertically from a 24-year low of ¥146 to a dollar to as high as ¥140, before retracing back to near ¥142-¥143 range bound, and it has been ahead to record the first weekly gain since August.

The forex intervention surprised the market participants and especially those who have been opening short bets on the Japanese Yen amid the monetary policy divergence as they are bracing for higher U.S. interest rates while expecting anchored Japanese rates to go nowhere anytime soon despite the record-high inflation in Japan.

Traders have been bearish on the Yen against the U.S. dollar since the hawkish Federal Reserve started hiking interest rates to curb inflation at a time the dovish Bank of Japan has been sticking to its accommodative monetary policy with nearly zero rates, adding more pressure on the Yen across the board.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

Yen bounced vertically from a 24-year low of ¥146 to a dollar to as high as ¥140, before retracing back to near ¥142-¥143 range bound, and it has been ahead to record the first weekly gain since August.

The forex intervention surprised the market participants and especially those who have been opening short bets on the Japanese Yen amid the monetary policy divergence as they are bracing for higher U.S. interest rates while expecting anchored Japanese rates to go nowhere anytime soon despite the record-high inflation in Japan.

Traders have been bearish on the Yen against the U.S. dollar since the hawkish Federal Reserve started hiking interest rates to curb inflation at a time the dovish Bank of Japan has been sticking to its accommodative monetary policy with nearly zero rates, adding more pressure on the Yen across the board.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

USDJPY pair, 30-minutes chart

Yen bounced vertically from a 24-year low of ¥146 to a dollar to as high as ¥140, before retracing back to near ¥142-¥143 range bound, and it has been ahead to record the first weekly gain since August.

The forex intervention surprised the market participants and especially those who have been opening short bets on the Japanese Yen amid the monetary policy divergence as they are bracing for higher U.S. interest rates while expecting anchored Japanese rates to go nowhere anytime soon despite the record-high inflation in Japan.

Traders have been bearish on the Yen against the U.S. dollar since the hawkish Federal Reserve started hiking interest rates to curb inflation at a time the dovish Bank of Japan has been sticking to its accommodative monetary policy with nearly zero rates, adding more pressure on the Yen across the board.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

USDJPY pair, 30-minutes chart

Yen bounced vertically from a 24-year low of ¥146 to a dollar to as high as ¥140, before retracing back to near ¥142-¥143 range bound, and it has been ahead to record the first weekly gain since August.

The forex intervention surprised the market participants and especially those who have been opening short bets on the Japanese Yen amid the monetary policy divergence as they are bracing for higher U.S. interest rates while expecting anchored Japanese rates to go nowhere anytime soon despite the record-high inflation in Japan.

Traders have been bearish on the Yen against the U.S. dollar since the hawkish Federal Reserve started hiking interest rates to curb inflation at a time the dovish Bank of Japan has been sticking to its accommodative monetary policy with nearly zero rates, adding more pressure on the Yen across the board.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

USDJPY pair, 30-minutes chart

Yen bounced vertically from a 24-year low of ¥146 to a dollar to as high as ¥140, before retracing back to near ¥142-¥143 range bound, and it has been ahead to record the first weekly gain since August.

The forex intervention surprised the market participants and especially those who have been opening short bets on the Japanese Yen amid the monetary policy divergence as they are bracing for higher U.S. interest rates while expecting anchored Japanese rates to go nowhere anytime soon despite the record-high inflation in Japan.

Traders have been bearish on the Yen against the U.S. dollar since the hawkish Federal Reserve started hiking interest rates to curb inflation at a time the dovish Bank of Japan has been sticking to its accommodative monetary policy with nearly zero rates, adding more pressure on the Yen across the board.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

The Japanese Yen managed to recover to the ¥142 level on Thursday morning, after the Bank of Japan intervened in the forex market to support the falling currency for the first time since 1998.

USDJPY pair, 30-minutes chart

Yen bounced vertically from a 24-year low of ¥146 to a dollar to as high as ¥140, before retracing back to near ¥142-¥143 range bound, and it has been ahead to record the first weekly gain since August.

The forex intervention surprised the market participants and especially those who have been opening short bets on the Japanese Yen amid the monetary policy divergence as they are bracing for higher U.S. interest rates while expecting anchored Japanese rates to go nowhere anytime soon despite the record-high inflation in Japan.

Traders have been bearish on the Yen against the U.S. dollar since the hawkish Federal Reserve started hiking interest rates to curb inflation at a time the dovish Bank of Japan has been sticking to its accommodative monetary policy with nearly zero rates, adding more pressure on the Yen across the board.

The Federal Reserve approved a third-consecutive 0.75 percentage point rise to 3%-3,25% on Wednesday, with Chairman Jerome Powell anticipating that interest-rate increases will continue higher up to 4,6% in 2023 as the Fed fights high inflation, resulting in a further widening of the interest rate differential, which is seen weighing negative on the Yen and increasing the support of the dollar.

As a result, the DXY-dollar index which tracks the greenback against six major peers hit a fresh 20-year high of 112,35 on Friday morning, with the USDJPY pair recording over 40% gains since Covid-led March 2020 lows.

By contrast, the Bank of Japan at its meeting on Thursday had kept its key rates unchanged and stuck by its policy of capping long-term bond yields, saying that the underlying weakness of demand in Japan would ensure that inflation falls back of its own accord next year.

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