Home Business Dollar catches breath after new highs in 2021 with Powell confirming. PMI test today

Dollar catches breath after new highs in 2021 with Powell confirming. PMI test today

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Movements just below par for the Dollar index which always travels the 96 threshold. The dollar strengthened further by updating again the highs of the year after US President Biden announced the appointment of Jerome Powell for a second term as president of the Fed.

“The reaction is explained by the fact that Powell supports a policy approach more favorable to anticipating rate hikes than the other Brainard candidate who is instead prone to a more cautious attitude – underlines the Intesa Sanpaolo economist, Asmara Jamaleh, in the ‘ Forex Flash ‘today – market expectations for Fed rate hikes next year have in fact increased further, now pricing in just over two hikes of 25 basis points each. ”
“Since it seems unlikely that the Fed, while signaling a start to the cycle of hikes next year, will already indicate more than two hikes in December in 2022, the upside of the dollar should begin to decline, it being understood that margins still remain. strengthening in the short term “, adds the expert, indicating that there is a new test in this sense with SMEs, which are expected to be positive.

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