Breaking News
Investing Pro 0
Black Friday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

U.S. Dollar Buoyed as Fed Pivot Hopes Fade

By NAGA (Michalis Efthymiou)Market OverviewNov 21, 2022 04:39AM ET
www.investing.com/analysis/us-dollar-buoyed-as-fed-pivot-hopes-fade-200632613
U.S. Dollar Buoyed as Fed Pivot Hopes Fade
By NAGA (Michalis Efthymiou)   |  Nov 21, 2022 04:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/USD
-0.06%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NDX
-0.70%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
-0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
-1.68%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-1.78%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BTC/USD
-0.34%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Over the weekend, Traders mainly focused on two stories developing within the financial trading markets. The first was definitely the prices of crude and Brent oil which significantly declined, crude oil prices declined to below $80 per barrel for the first time since Sept. 30, 2022. This is something we will look at in more detail below.

US dollar and stocks

The second story was the US dollar again increasing in value. This morning the price of the US dollar Index increased by 0.54%, and the Dollar has increased against all main currencies. The currency initially declined after lower-than-expected inflation figures, which resulted in the markets pricing in a 50 basis point hike, not 75 bps.

However, over the past week, the Fed has reassured markets that the regulator will remain restrictive and that inflation is still too high. The committee also confirmed they would not consider a "break" in hikes nor pivot any time soon.

EUR/USD price chart.
EUR/USD price chart.

Tomorrow will be an important day for the US dollar and also US Stocks. The Federal Reserve has over four speeches scheduled for members of the FOMC, which determine the next rate hike.

This includes speeches from Mester, George, and Bullard, and any comments or signals provided can influence the price movement. The price of US Indices has so far maintained previous gains, regardless of the appreciating Dollar. Only some indices, such as the Nasdaq 100, have formed a minor retracement.

Cryptocurrencies

This morning, cryptocurrency traders are still fixed on the market's price action. The price of Bitcoin this morning is again declining and has dropped below $16,000 for the first time since November 2020.

The market share in Bitcoin has slightly increased, but the overall market capitalization has continued to decline. The price of Bitcoin has declined by 1.70% and Ethereum by 1.65% during this morning's Asian Session.

Crude oil

Crude oil has seen a considerable decline, which may be negative for buyers but is positive for the overall economic condition, inflation, stocks, and all citizens. Traders are evaluating the decline and considering whether OPEC will allow the price to decline to $70. OPEC has repeatedly made public its objective of keeping oil prices at an $80 minimum.

The price this morning is currently moving within a retracement and has formed a double top. If the double top does not gain momentum to a "higher high," it would further indicate a downward trend. The price is currently moving below most averages, confirming the downward trend. However, traders should monitor that the price does not spike upwards to change the current valid indications.

Crude oil hourly chart.
Crude oil hourly chart.

The price of crude oil is mainly influenced by news coming out of China. China has seen an increase in COVID-19 cases and its first death in 6-months. Some cities have already advised citizens to try to remain indoors, but investors fear the situation may develop into another city-wide lockdown. Lockdowns and restrictions significantly lower demand, especially in China, the largest importer.

The news from China is the main reason for the decline, but the rise in the US dollar and general high monetary policy also pressure the price. However, investors should be cautious of the OPEC meeting in the first week of December, which may aim to upset the trend.

Investors will be interested to see if OPEC chooses to cut its production targets again. This would lower supply and potentially support prices once again. Lastly, investors would be interested to hear the cartel's demand expectations for the next quarter.

U.S. Dollar Buoyed as Fed Pivot Hopes Fade
 

Related Articles

U.S. Dollar Buoyed as Fed Pivot Hopes Fade

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Saqlain Pracha
Saqlain Pracha Nov 21, 2022 3:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Where we can see the gold in this week?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email