Cromwell FX Market View Hawkish Fed Turbocharges USD

cromwell_weekly_18_020222.png

This post was originally published on Trademakers

courtesy of trademakers

The greenback continued its rise against all other majors after the Fed left the markets in no doubt that it was going ahead with its tightening plans. Asset purchases will be taken down to zero by next month, and a 25bp hike is fully priced into the March meeting. Furthermore, the market is now pricing roughly 4 to 5 hikes in 2022.

 

The more aggressive scenario could see five rate hikes in March, May, June, September, December. The less aggressive scenario could se four rate hikes in March, May, July, November.

 

The Euro remains on the backfoot losing 1.6% as the ECB remains dovish. The ECB interest rate decision this week could provide more information.

 

Commodity currencies faired the worst as equity rallies were sold throughout the week and risk of became more and more prevalent. Australian Dollar was the worst performing one as RBA is clearly lagging behind Fed on tightening, followed by New Zealand Dollar.

 

Oil seems to be unstoppable in the current environment, registering consecutive weekly gains. The supply chain problems and high inflation are both giving oil a boost and it’s hard to see where this move will end. Last week the WTI rallied 2.9% to close at $87.24.

 

The week ahead key central banks’ meetings, comprising the RBA, BOE and ECB, scheduled later this week. Friday will see the critical US Nonfarm Payrolls release.

Weekly Majors Market Performance

cromwell_weekly_18_020222

What is Cromwell FX?

Cromwell FX is a quantitative FX manager offering superior risk adjusted returns. The portfolio is the most liquid pairs . The strategy is fully automated and adhere to strict rick management procedures to control leverage and position limits.

The post

Cromwell FX Market View

Hawkish Fed Turbocharges USD

appeared first on JP Fund Services.

The post Cromwell FX Market View Hawkish Fed Turbocharges USD first appeared on trademakers.

Connect with SGT Markets

Follow us for the latest news & insights

Related Articles

jpfs_3D_Bull_Bear_featured-1024x536.jpg

3D Bull & Bear Monthly Update: April 2024

tm_market_view_2024-1024x538-1.jpg

Risk-on continues its trend

tm_market_view_2024-1024x538.jpg

Risk-on continues its trend

tm_market_view_2024-1024x538-1.jpg

Currencies More Subdued (Apart from Yen)

tm_market_view_2024-1024x538.jpg

Currencies More Subdued (Apart from Yen)

tm_market_view_2024-1024x538-1.jpg

BoJ Intervenes to Shore Up Yen

tm_market_view_2024-1024x538.jpg

BoJ Intervenes to Shore Up Yen

jpfs_3D_Bull_Bear_featured-1024x536.jpg

Preserving and Accumulating Wealth in the S&P 500

tm_market_view_2024-1024x538-1.jpg

Yen Collapse; FOMC in Focus

tm_market_view_2024-1024x538.jpg

Yen Collapse; FOMC in Focus

jpfs_3D_Bull_Bear_featured-1024x536.jpg

3D Bull & Bear Monthly Update – March 2024

jpfs_3D_Bull_Bear_featured-1024x536.jpg

3D Bull & Bear Monthly Update – February 2024