The dollar is rising strongly ahead of the release of the results of the US Federal Reserve meeting

2024-01-03 15:59:46

U.S. dollar

The US dollar achieved a strong rise during trading on Wednesday, supported by several factors that contributed to enhancing the demand for buying the dollar in transactions, with the markets awaiting the release of the results of the US Federal Reserve meeting this evening.

In this regard, we can discuss the most important factors that enhanced the upward momentum of the US dollar’s movements in today’s trading:

First: Positive economic data

The dollar found strong support from positive PMI data for the manufacturing sector issued earlier, as the data revealed the continued expansion of the manufacturing sector in the United States, recording 47.4 points last December, better than market expectations that indicated it would record only about 47.1 points. The reading also came as The new reading is better than the previous reading for November, which settled at 46.7 points.

Urgent – US ISM Manufacturing Purchasing Managers data for December is released!

These data have raised market optimism about the stability of manufacturing conditions within the United States and its strong impact on economic growth in the country, which supports the efforts of the US Federal Reserve to maintain tight monetary policy for a longer period than the markets expect, which was reflected positively on the dollar’s movements in the currency market today. .

Second: Statements by US Federal Reserve Member Barkin

Also, the statements of monetary policy maker Thomas Barkin contributed to supporting the upward movements in the performance of the US dollar in today’s currency market trading, in which he made it clear that the US Federal Reserve’s additional interest rate hike is still on the table, especially in light of the health of economic activity in the country, and this in turn. , fueled currency market expectations that the Federal Reserve’s battle to curb inflation is not over yet, which led to an eventual rise in the US dollar.

Third: The strong recovery in US Treasury bond yields

The US dollar received significant support from the rise in US Treasury bond yields of various terms, as the 10-year US government bond yield recorded an increase of about 1.47% to 3.993%, and the 30-year US government bond yield also rose by 1.60% to record about 4.138%, reflecting Increasing demand for buying the dollar in today’s transactions.

The dollar awaits the release of the minutes of the US Federal Reserve meeting

The US dollar is awaiting the release of the results of the Federal Reserve meeting at 7:00 pm GMT, as the minutes are likely to include some important points related to the circumstances and discussions of the last meeting about the future of monetary policy, which may affect the US Federal Reserve’s actions in the upcoming meetings, which will… It will have a clear impact on the movements of the US dollar in the currency market in subsequent trading.