The US Dollar Index is dropping back during early Tuesday
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.
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.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.