- DXY accelerates its reversal from the 99.30 area to test two-week lows at 97.80.
- The USD falls across the board after the Fed’s monetary policy decision.
- Upbeat jobs and construction data have failed to encourage USD buyers.
The dollar is losing ground across the board on Thursday. The US Dollar Indexwhich measures the value of the US dollar against a basket of the six most traded currencies, has lost around 0.7% so far today to test two-week lows below 97.80.
The dollar loses ground after the Fed rate hike
The USD accelerated its reversal from levels just below the 21-month high at 99.35 following the Fed’s monetary policy decision. The Bank confirmed investors’ expectations to raise interest rates by 25 basis points and signaled six more hikes in 2022.
In a stark illustration of the “buy the rumour, sell the fact” adage, the US dollar is giving away gains, retreating from pre-Fed highs and in a steady downtrend, despite the release of a series of upbeat macroeconomic figures. . .
US housing starts rose by 1.769 million in February, beating expectations for a 1.69 million advance, while building permits registered an increase of 1.859 million, above the 1.85 million forecast by analysts at market.
Additionally, US initial jobless claims fell to 214,000 in the week of March 11 from 229,000 in the previous week, and the Philadelphia Fed Manufacturing Index improved to 27.4 in March from 16 in the previous month.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
