Market Analysis

The US Dollar Index is dropping back during early Tuesday

 

FOREX

The US Dollar Index is dropping back during early Tuesday European trading, having earlier in the session reached its highest for the year. The greenback’s strength follows the nomination of Jerome Powell by President Joe Biden for a second term as Chair of the Federal Reserve. The fact that Mr Powell was chosen, instead of Lael Brainard, who was seen as a more dovish option, is an implicit endorsement by the President of the Fed’s hawkish pivot, acknowledging the risk posed by inflation. This scenario is likely to continue to support the US dollar as the Fed is now expected to step up the pace of tapering and set the timing for rate hikes in the new year.

 

Source: ActivTrader

 

OIL

WTI slipped during early Tuesday trading on reports that several countries, including the United States, will tap into their strategic oil reserves and release some of them into the market, in order to decrease the imbalance between supply and demand and halt the escalation in prices.

 

Source: ActivTrader

 

 

 

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