Now: Dollar Index Soar to Peak 5 years
Greenback maintain the prestige
The king is back and reclaim its position as the best performer among all the G10 currencies. The momentum can be seen even in the dollar index which is the trade-weighted US Dollar against all the G10 currencies when dollar Index reach the 5-years high.
Although the macro economy data last night show a figure in which can’t be consider exceptional, the buck still able to keep its momentum. The trade deficit for US last night hit more than $125B for last month in which should affect the growth of the GDP for the 1st quarter this year.
Rather than dwelling on the weak deficit data last night, people still focusing on the possibility of the rate hike of 50-basis points and also more tightening policy this upcoming FOMC meeting which will be held next week.
Yen weakness become obvious lately after BoJ mention that they will keep the ultra-dovish policy remain until they reach the inflation goal that been set. Although the last few days, Yen gain some momentum after the risk-aversion sentiment is clouding the markets but after the 3rd day, investors are taking the chances that the BoJ policy will always weaken the Yen and betting on the long position.
28 April 2022