US FX WRAP: Dollar gains on Waller and risk-off
Newsquawk ·
The Dollar was firmer against all G10 peers amid the broad based risk off sentiment, and hawkish comments from Fed's Waller. For the former a few factors weighed, such as concerns ahead of SK Hynix's earnings, but the more pressing issue was the US/Iran relationship worsening once again and the Middle East threatening to break out across the whole region again, with explosions heard in numerous Saudi Arabia locations. Yemen's houthis attacked an airport in response to Saudi bombing an airport in Yemen. On the Fed footing, and ahead of CPI & Fed Chair Warsh tomorrow, Waller stated if there is another hot reading on core inflation this week, the Fed will need to consider rate hike in near term, and that they would need to see several months of lower core inflation to feel inflation is moving in right direction. The influential Waller added that if he gets another higher reading on inflation, he will treat that as signal, not noise. CAD was the relative G10 outperformer and was flat v
AI 시장 분석
The US dollar strengthened against all G10 countries. The reasons for the dollar's strength are the hawkish speech by Fed's Waller and risk aversion sentiments. Waller's speech made it possible for the Fed to consider raising interest rates. The CAD was relatively the strongest.
상승 영향
- Interest Rates — If the Fed considers raising interest rates, the dollar's strength is likely to persist.
- US Dollar — Risk aversion sentiments make it more likely for investors to choose the dollar as a safe-haven asset.
하락 영향
- Interest Rates — If the Fed does not consider raising interest rates, the dollar's strength may weaken.
- US Dollar — If investors do not choose the dollar as a safe-haven asset due to risk aversion sentiments, the dollar's strength may weaken.
DYAX 전담 분석
The recent speech by Fed's Waller raised concerns that the Fed may raise interest rates. This had a positive impact on the US dollar. Investors are also showing risk aversion sentiments, choosing the US dollar as a safe-haven asset. The CAD was relatively strong among the majors.
AI가 생성한 분석으로 투자 자문이 아닙니다.
DYAX Investor Sentiment
Bullish (Long) 46% · Bearish (Short) 54%
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