Dollar still protagonist on the forex market. After the positive performance of the past week, the greenback also opened this octave up, also favored, on Friday, by inflation data which showed a higher than expected increase, visibly pushing both short and long yields to new highs. . Right now the Dollar index is traveling in the 105 area, showing growth of around 0.8 percent.
“The greenback also benefited from a new increase in general risk aversion, due, among other things, to the further deterioration of the global growth scenario due to even higher-than-expected inflation and consequently the implementation of upward pathways even more incisive rates “, underline the Intesa Sanpaolo experts, recalling that Wednesday’s FOMC will be a key test for the dollar. “The Fed will raise rates by 50bps from the current 0.75-1.25% range, but the focus will be on the expected path of hikes from now to next year. The market is already pricing in a very robust path (225-250). bps of increases this year and another 75 bps around next) but fairly consistent with which the Fed could roughly align – they add -. In this case the bullish effect on the dollar should be contained and should be more or less amplified by the contextual evolution of the risk aversion “.