U.S. Dollar Spikes Up As Treasury Yields Climb On Powell's Hawkish Comments
April 22 2022 - 6:09AM
RTTF2
The U.S. dollar was higher against its major counterparts in the
European session on Friday, buoyed by a spike in treasury yields
following comments from Federal Reserve Chair Jerome Powell
supporting aggressive rate hikes to tackle soaring inflation.
The benchmark yield on the 10-year note touched 2.92 percent.
Yields move inversely to bond prices.
Speaking at an IMF panel discussion, Powell signaled that two or
more half-point hikes would be appropriate at upcoming meetings to
tame inflation.
Investors are pricing in a half-point move in May and a 75 basis
point hike in June.
The prospect of bigger rate hikes spooked global markets, while
the rally in the dollar weighed on commodities.
The greenback appreciated to 0.9570 against the franc, ts
strongest level in nearly two years. If the greenback rises
further, it may challenge resistance around the 0.97 level.
The greenback jumped to its highest level since November 2020
against the pound, at 1.2856. The greenback may target resistance
around the 1.25 level.
The greenback rebounded to 128.59 against the yen, from a low of
127.74 seen at 2 am ET. The greenback is likely to find resistance
around the 130.00 level.
The greenback touched more than a 5-week high of 0.7266 against
the aussie and near a 2-month high of 0.6644 against the kiwi, up
from its prior lows of 0.7377 and 0.6737, respectively. The
greenback is seen finding resistance around 0.72 against the aussie
and 0.64 against the kiwi.
The greenback was up against the loonie, at a fresh 5-week high
of 1.2696. Next likely resistance for the currency is seen around
the 1.29 level.
The greenback resumed its early rally against the euro, hitting
a 2-day high of 1.0784. On the upside, 1.06 is likely seen as the
next resistance level for the currency.
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